The Andhra Pradesh police would produce the founder and former chairman of Satyam Computers, B Ramalinga Raju and his brother, co-founder and former managing director, Rama Raju before the 6th additional chief judicial magistrate on Saturday.
The Crime Investigation Department (CID) of police arrested the duo on Friday night when both appeared before the police with their advocates for surrender but police on the back of registered complaint had decided to arrest the couple on the charges of “criminal breach of trust, criminal conspiracy, cheating, falsification of records and forgery,” informed Director General of Police S S P Yadav to media.
A stakeholder had filed a complaint against the ex-chairman Ramalinga Raju and his brother Rama Raju under Indian Penal Code, alleging them to be liable for major destruction of the share prices in the stock market, which became the cause of heavy loss to the complainer.
Earlier Andhra Chief Minister Y S Rajasekhara Reddy in the wake of heavy pressure receiving from opposition parties had ordered the CID Wednesday to handle the case with viewing criminal angle too.
On the report of Security and Exchange Board of India (SEBI) and Registrar of Company (RoC), Ramalingum would have to face triple trials separately as Yadav stated that the investigations of SEBI and RoC would be continued separately with this case, and this arrest would not put any impact on that.
Inspector General of Police, CID, V S K Kaumudi informed reporters that the arrested duo would be produced before the magistrate within 24 hours. CID officials interrogated both accused for more than three hours to collect evidence, which would be produced before the court.
The CID as per report is also seeking to Vadlamani Srinivas, the former Chief Financial Officer (CFO) of Satyam Computer, pertaining to involvement of fraudulent manipulation in company’s balance sheet. Srinivas had resigned from his post and his whereabouts is unknown.
The Market regulator SEBI on Friday had also served summons to Ramalinga Raju for appearing before the regulator but now after the arrest, the SEBI team would enquire him in CID custody. An investigating team of SEBI has been conducting the inquiry into veracity of balance sheet and checked the books of accounts at Satyam headquarter.
Ban on Satyam trading
In the latest development, the National Stock Exchange (NSE) has stated in its official website to eliminate the scrip of Satyam from derivatives segment. Since January 30, the fresh contracts will not be available while the existing contracts would be expired on January 29, 2009, stated NSE.
Satyam Board Disperses
Viewing the recent havoc, the Union Ministry of Company Affairs has dissolved the Satyam board with immediate effect and barred the members of the board from taking any decision. The Ministry has appointed 10 nominees on the board to ensure uninterrupted operations and restore the confidence of all employees, customers and shareholders across the globe. The next meeting of the nominee members would be held within the next seven days, official informed.
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