Click to play videoHyderabad: Investigative agencies and the market regulator are impatient to question Satyam Computer Services’ former chairperson B Ramalinga Raju and his brother B Rama Raju for the Rs 7,000-crore fraud in the company’s accounts.
The Andhra Pradesh Police’s Criminal Investigation Department (CID) and the Securities Exchange Board of India want to question the Rajus and perhaps would be disappointed to hear that a court in Hyderabad deferred a decision on the brothers’ bail plea for Monday.
The authorities have a reason to be impatient to begin interrogating the brothers. A CID lawyer told the court that the fraud is massive and the investigators need access to Ramalinga Raju immediately and for a reasonable time.
Raju has confessed to doctoring accounts for seven years, which means the investigators will have to check accounts for the entire period. They will also have to check 28 quarterly results of Satyam Computers.
The CID claimed in the court that Raju used a complex matrix of 250 benami (fictitious) companies to cook accounts in Satyam.
Investigators suspect that Raju has diverted funds to many other countries. They are also looking for details of banks and financial institutions that might have helped him in the fraud. Raju's lawyers plan to oppose any move to grand police custody or allow the SEBI to question their client.
The market regulator has sought seven-day custody of Raju, Rama Raju and Satyam’s former Chief Financial Officer Srinivas Vadlamani. Raju’s legal team says they are opposed to SEBI getting custody of their client.
“Their application is not maintainable on the ground that there is no provision in law, particularly under Section XI of SEBI Act,” said Bharat Kumar, Raju's lawyer
Raju resigned as chairman of Satyam, India’s fourth largest Information Technology company, on January 7 after admitting that the company’s accounts were doctored to the amount of Rs 7,106 crore over “several years.” Rama Raju resigned as Managing Director and Chief Executive Officer.
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