Andhra Pradesh ready for CBI probe into Satyam fraud: YSRJanuary 28th, 2009 - 4:54 pm ICT by IANS
Hyderabad, Jan 28 (IANS) Andhra Pradesh Chief Minister Y.S. Rajasekhara Reddy Wednesday wrote to Prime Minister Manmohan Singh, saying that his government had no problems with the Central Bureau of Investigation (CBI) taking over the investigations into the Rs.70 billion (Rs.7,000 crore) fraud in Satyam Computer Services.”Our government would welcome the CBI taking over the case, if deemed appropriate,” the chief minister wrote in the letter, copies of which were released to the media.
His suggestion came amid mounting criticism from opposition parties over the way in which the Crime Investigation Department (CID) of Andhra Pradesh was handling the probe and reported comments by central government agencies complaining about the lack of required cooperation from the state agency.
“The present political context just ahead of the general elections made the issue more sensational. The political parties exploited the issue and made targeted attacks that the state government is interested in diluting the gravity of the case,” he wrote.
“There have been reports in the media carrying comments supposedly made by central government agencies to the effect that required cooperation with central investigating agencies is wanting.”
YSR, as the chief minister is popularly known, also mooted the idea that the ministry of finance or ministry of company affairs suggest a coordinating mechanism involving central investigating agencies like SEBI (Securities and Exchange Board of India) or SFIO (Serious Fraud Investigation Office) to coordinate with the state CID.
“The state government is also sensitive to the fact that the huge human potential of 50,000 IT professionals should not be dissipated,” he wrote.
The chief minister has informed the prime minister in the letter that the CID was in regular touch with central agencies like SEBI, Enforcement Directorate and Registrar of Companies and held several rounds of talks with their officials.
“The director (investigation) of the income tax department was also informed about searches from time to time and the IT department was also associated in the investigations.”
Referring to the outcome of the investigations conducted by the CID so far, the chief minister said over 300 companies were raised by the close relatives of B. Ramalinga Raju as directors/promoters and this facilitated insider trading of shares.
“Investigations so far revealed embellishment of the bank accounts by the company for more than seven years to impress the clients within the country and overseas. This inflation of current account balance is testified by bank officials concerned. In addition, the company also raised money from NBFCs (non-banking financial companies) by pledging shares,” the letter said.
Defending the contracts for various infrastructure projects awarded to Maytas Infra, the firm owned by Ramalinga Raju’s son, the chief minister, however, said the scope of the CID investigations includes a probe into any connecting link between Satyam and Maytas.
- Third day of questioning for Satyam's Raju - Jan 20, 2009
- IT department freezes accounts of Mahindra Satyam - Mar 22, 2011
- Andhra chief minister seeks CBI probe into Satyam fraud - Feb 10, 2009
- CBI plea against Ramalinga Raju's bail to be heard Monday - Aug 29, 2010
- Ramalinga Raju admits to diverting Satyam money - Jan 21, 2009
- IT department freezes accounts of Mahindra Satyam (Lead) - Mar 22, 2011
- Satyam probe handed over to CBI (Lead) - Feb 16, 2009
- Mahindra Satyam-Tech Mahindra merger put on hold - Feb 14, 2011
- CID takes custody of Rajus, begins grilling - Jan 18, 2009
- Satyam Ramalinga Raju released on bail - Nov 05, 2011
- Timeline of events surrounding Satyam Computer - Apr 13, 2009
- Satyam's Ramalinga Raju, two others get bail - Nov 04, 2011
- Market regulator may finally get to grill Satyam ex-chief - Jan 15, 2009
- Tripura to probe illegal financial firms - Mar 07, 2012
- Satyam scam: government promises help to CBI after court rap - Feb 25, 2009