SEBI to interrogate Satyam Rajus again

February 9th, 2009 - 9:25 pm ICT by IANS  

Ramalinga RajuHyderabad, Feb 9 (IANS) The Securities and Exchange Board of India (SEBI) may again interrogate disgraced founder of Satyam Computer Services B. Ramalinga Raju and his brother B. Rama Raju as the Andhra Pradesh High Court Monday admitted its petition.

The SEBI, which interrogated the Raju brothers in a jail here last week, has also filed another petition in a lower court seeking permission to question three other accused - former chief financial officer (CFO) Vadlmani Srinivas and two former auditors from Pricewaterhouse. The sixth additional chief metropolitan magistrate admitted the SEBI petition.

The High Court adjourned the case for two weeks after it was informed that only Rama Raju had responded to the notice served Jan 30, while the same was still awaited from Ramalinga Raju.

SEBI officials had interrogated the Raju brothers in Chanchalguda Central Jail here for three days (Feb 3-6) following an interim order by the Supreme Court.

It may be recalled that SEBI had approached the High Court Jan 28, challenging an order of a lower court, which had dismissed its petition.

The High Court Jan 30 had refused to pass interim order as prayed by Solicitor General of India Goolam E. Vahanvati and posted the matter for further hearing Feb 9 after issuing notices to the accused.

Meanwhile, SEBI moved the Supreme Court, which passed interim orders Feb 2 allowing the market watchdog to grill the Raju brothers in jail.

As SEBI is pursuing its petition in the High Court, it is likely that it may again question the Raju brothers in the Rs.70-billion (Rs.7,000-crore) scam, the biggest in India’s corporate history.

The SEBI also approached the court of sixth additional chief metropolitan magistrate, which admitted its petition to interrogate three other accused in the case.

The same court also adjourned to Tuesday hearing on a petition by the Serious Fraud Investigation Organisation (SFIO), seeking permission to quiz the Raju brothers and the former CFO.

The magistrate also posted to Tuesday hearing on fresh bail petitions of two former auditors of Satyam.

The magistrate Feb 3 had dismissed the bail applications of S. Gopalakrishnan and Srinivas Talluri, the suspended officials of Pricewaterhouse, the firm that audited the accounts of Satyam.

Another magisterial court adjourned the hearing on the anticipatory bail petition of Ramalinga Raju’s another brother Suryanaryana Raju.

Suryanarayana Raju, director of SRSR Advisory Services, a firm floated by Ramalinga Raju to manage their stakes in Satyam, is reportedly in hiding as he is wanted by Crime Investigation Department (CID) of the Andhra Pradesh police which is probing the fraud.

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