Click to play videoNew Delhi/Hyderabad: Andhra Pradesh’s two top political leaders have disowned B Ramalinga Raju, the former chief of Satyam Computers, who claims a Rs, 7,000-crore fraud in the company’s accounts.
A team of the Securities and Exchange Board of India (SEBI) served summons at Raju's residence in Hyderabad’s Jubilee Hills on Friday. Raju or relatives were not available.
Raju’s lawyer, S Bharat Kumar, said his client would appear before the regulator on Saturday.
Andhra Pradesh Chief Minister Y S Rajasekhara Reddy called the scandal at Satyam "unfortunate" and announced that the state police’s Crime Branch-Criminal Investigation Dept (CB-CID) is independently probing the alleged fraud.
Raju, Satyam’s founder-chairman, resigned from the IT major's board on Wednesday after admitting a multi-crore fraud in the company’s accounts. In a letter, Raju said that the company had fraudulently incorporated a non-existent cash component and inflated the bank balance to reflect Rs 5,040 crore (Rs 50.4 billion) as against Rs 5,361 crores (Rs 53.61 billion).
Asked whether Reddy’ allegations had shocked him, Reddy said: “Naturally none of us expected a thing like this.”
Reddy said the Satyam episode was "unfortunate" and "none of us expected this kind of this kind of thing would happen". The Chief Minister said his government was “evaluating” projects given to Maytas Infra, a construction and real estate firm promoted by Raju’s family. "We are evaluating it as everything happened in the last two days," he said.
TDP leader Chandrababu Naidu, a former chief minister of the state, blamed Reddy for ignoring Raju’s revelations. “The Congress came to power and the state hasn't progressed at all, After Satyam, the CM only talked, as did Chiranjeevi, who knows nothing of the subject,” he said.
Chiranjeevi, the Telugu film actor, last year entered politics by forming the Prajarajyam party and has been accused of being a novice.
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