CBI registers case against Satyam’s Raju, others (Second Lead)

February 20th, 2009 - 8:24 pm ICT by IANS  

New Delhi, Feb 20 (IANS) The Central Bureau of Investigation (CBI) Friday registered a case against disgraced Satyam founder B. Ramalinga Raju and other company officials in connection with the Rs.70 billion fraud and constituted a team of top CBI officials and chartered accountants to go into the scam.
Two days after the CBI said it would take over the probe, the agency registered a First Information Report (FIR) against Raju and others accused in the scam and also formed a 15-member Multi-disciplinary Investigation Team (MDIT) for the probe.

“The CBI today registered a First Information Report (FIR) against B. Ramalinga Raju, the then Chairman, Satyam Computer Services Limited, directors and auditors of Satyam Computer Services Limited and others and has taken up investigation of the case from CB (crime branch) CID, Andhra Pradesh,” an official statement said Friday.

The case has been registered under sections 120-B (Criminal Conspiracy), 409 (Criminal breach of trust by public servant), 420 (cheating), 467 (forgery), 468 (forgery for purpose of cheating), 471 (forging documents including electronic) and 477A (falsification of accounts) of the Indian Penal Code.

Raju had Jan 7 confessed that he had cooked the company’s account books and inflated profits over the past several years.

“The CBI has also constituted a MDIT headed by V.V. Lakshmi Narayana, DIG (Deputy Inspector General), CBI, Hyderabad, with its headquarters at Hyderabad to undertake a thorough probe into the Satyam scam. Superintendent of Police, CBI, Hyderabad will be the Chief Investigating Officer,” the statement said.

“Apart from these officers, MDIT will consist of a Superintendent of Police, Bank Securities and Fraud Cell (BS&FC) and 11 other officers of CBI. AGM, State Bank of India (technical officer in CBI), will also be part of this team.”

“The Institute of Chartered Accountants of India (ICAI) has nominated five experienced Chartered Accountants to be part of this team. Institute of Cost and Works Accountants of India (ICWAI) has also agreed to nominate two of its officers to form part of this team,” it added.

The cabinet secretariat has promised to provide necessary support of the departments, ministries and institutions like Securities and Exchange Board of India, Registrar of Companies, Serious Fraud Investigation Office, Enforcement Directorate and Income Tax in the probe.

“The revenue department of government of Andhra Pradesh will nominate an officer to liaise with this case. Today, the Andhra Pradesh High Court has passed an order to provide logistics and other necessary assistance to CBI for this case,” the statement further said.

The Andhra Pradesh government had requested the central government for a CBI probe. It received a notification Wednesday to take over the case.

The agency can now avail up to nine days to interrogate Ramalinga Raju and the others.

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