Andhra minister says Centre actively probing Satyam case

January 18th, 2009 - 7:23 pm ICT by ANI  

Ramalinga Raju

Hyderabad, Jan.18 (ANI): Andhra Pradesh Finance Minister K. Rosiah on Sunday said that the Central Government is actively probing the fraud case involving software major Satyam Computer Services.
“The Government of India is actively looking into all these things. Their agencies are more capable of looking into all these aspects. Government of India is alert to the happenings, yesterday Prime Minister himself said that the fall of Satyam company has brought disrepute to this country. So, let the Government of India do its exercise, state government also will have its own method,” said Rosaiah.
Rosiah’’s statement came hours after police took former Satyam Computer Services chairman B. Ramalinga Raju into its custody for interrogation on Sunday for four days following a local court order in relation to the Rs. 7800 crore financial fraud in the company.
Ramalinga Raju and his brother B Rama Raju, Satyam’’s co-founder and managing director, were arrested late on Friday, on charges of criminal breach of trust, criminal conspiracy, cheating, falsification of records and forgery.
Raju’’s counsel had earlier argued the case saying various investigating authorities have already laid their hands on various records concerning the offence and so it is not imperative for custodial interrogation by the police.
Chairman and founder Raju resigned after revealing years of accounting fraud at Satyam, including an admission that about a billion dollars, or 94 percent of the cash and bank balances on Satyam’’s books at end-September, did not exist.
Several securities fraud class action lawsuits have been filed in the United States on behalf of investors who bought Satyam American Depository Receipts (ADRs) in the last five years.
The accounting fraud battered Satyam shares, with its market value plunging to 330 million dollars at last Friday’’s close, against more than seven billion dollars just six months ago.
Hyderabad-based Satyam specialises in business software and back-office services for clients including General Electric and Nestle. (ANI)

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