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Satyam Saga: Ramalinga Raju surrenders, arrested
Published on Fri, Jan 09, 2009 at 22:17, Updated on Sat, Jan 10, 2009 at 09:00 in Business section
Tags: Satyam Crises, Ramalinga Raju , New Delhi
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New Delhi: Former Satyam chairman Ramalinga Raju and his brother, former Satyam Managing Director Ram Raju surrendered before the Andhra Pradesh Director General of Police on Friday night and were subsequently arrested, police spokesperson said.
Ramalinga Raju has been charged under various sections of the Indian Penal Code including Section 120B for criminal conspiracy, under Section 409 for breach of trust, under Section 420 for cheating, and under Section 468 and Section 471 for forgery.
On Wednesday, Raju - Satyam's Founder and Chairman - resigned from the company after confessing to country's biggest financial fraud of Rs 7,000 crore and disclosing massive financial irregularities.
Fifty-four-year-old Raju will appear before a team of market regulator Securities and Exchange Board of India (SEBI) at Satyam's corporate office at 1600 hrs IST on Saturday, his lawyer S Bharat Kumar said earlier.
Raju faces up to 10 years imprisonment along with a fine, which may extend to Rs 25 crore in the financial fraud that led to erosion of investors wealth by whopping Rs 10,000 crore in a day.
SEBI has already ordered an enquiry into the issue to find out if Raju has violated the various regulations pertaining to dealings in securities market.
The police said that Valdamani Srinivas, Chief Financial Officer, will be arrested on Saturday.
When contacted, a Satyam spokesperson declined to comment on the development.
What happens now?
The regulator would look into various statutory violations, which include unfair trade practices, insider trading regulation and take over code. The enquiry would be conducted by a SEBI General Manager, Sunil Kumar, who had been designated as investigating authority.
Under the SEBI Act, imprisonment and monetary penalty could be awarded "if any person contravenes or attempts to contravene or abets the contravention of the provision of this Act or of any rules or regulations made there under".
This would mean that Raju could be punished for violating the securities regulation and as well as for abetting officers of Satyam to commit financial fraud, corporate law practitioners said.
Board disbanded, Govt takes over
On Friday, the Central Government sacked Satyam Computers' directors and announced it will appoint 10 new directors within seven days to run the company tottering on the brink of collapse.
With this move Saturday's meeting of the truncated board of the company stands cancelled.
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Don\'t worry.this is like Worldcom or Enron debacle.Every country has some fraudster.this is not Indian character.Because Indian character is not
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Somebody have mercy and fire this news reader.
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I really don't know what to say. 2009 is stunning every Indian
and also Indians are being questioned
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ok first what is the proof that he has been arrested.Hasn't the media found any picture/video to support this?Who knows
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OK.. Jail for Raju, Punishment for Raju, Ban on Raju etc etc... What about CHARA GHOTALA , BOFORS SCAM, TAJ
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