Minister says funds ‘diverted’, probe looks at Maytas firms

Jan 19, 2009

Lies, damned lies…
CID begins interrogating RajusHyderabad: The Andhra Pradesh CID is looking closely at Maytas Infra and Maytas Properties — firms run by B Ramalinga Raju’s sons B Teja Raju and B Rama Raju Jr — to figure out where Satyam’s money disappeared. This, rather than what fraud the IT giant’s disgraced founder committed and how, is the focus of investigations currently, senior CID officers associated with the probe told The Indian Express.

On Sunday, Corporate Affairs Minister Prem Chand Gupta told PTI in New Delhi that there appeared to have been a “diversion” of funds from Satyam. “Prima facie aisa lagta hai ki diversion of funds ka kuchh issue hai. Jo facts and figures balance sheet mein show kiye gaye hain, they are not based on the correct information... galat kaam toh bahaut hua hai.”

Gupta, however, said “as of now” there was no plan for a CBI probe into the scam. “The Government has ordered inspection of eight companies (Satyam subsidiaries)... investigation by SFIO has also been ordered,” he said.

An investigator from the Andhra Pradesh CID’s Economic Offences Wing told The Indian Express: “It (the fraud) is so complex and so big. The obvious question is not how the fraud was committed but where has all the money gone? Naturally, we are looking at Maytas Infra and Maytas Properties, as both are owned by the Raju family, and in which they have a bigger stake than they did in Satyam. If you consider their phenomenal growth during the last few years, a lot of things become clear. All the money from Satyam could have gone into these companies... All that remains now is to join the dots.”

CID begins interrogating Rajus

Jan 19, 2009

Lies, damned lies…Hyderabad: Andhra Pradesh CID, which took former Chairman of Satyam Computer B Ramalinga Raju, his brother and ex-MD Rama Raju and former CFO V Srinivas into its custody from the Chanchalguda Jail here has begun a thorough interrogation of the trio.

The Sixth Additional Chief Metropolitan Magistrate yesterday granted permission to the CID, investigating the Satyam fraud, to take the company executives into custody for four days for further probe.

The court allowed the probing agency to question the accused during day hours in the presence of their counsel.

Following the magistrate's direction on providing medical treatment to the three, a doctor visited Ramalinga Raju and checked his health at the prison before being taken into the police custody. A five-member CID team, led by investigation officer N Balaji Rao, took the custody of accused around 1145 hrs amidst tight security.