Raju may have invested abroad

22 Feb 2009

HYDERABAD: The Crime Investigation Department (CID) is likely to have a tough time in unearthing Satyam founder B Ramalinga Raju's accounts and properties in foreign countries. Satyam has operations and offices in 65 countries spread across several continents.

The investigating agency has gathered preliminary information that Satyam has been maintaining accounts in 17 countries. The officials suspect Ramalinga Raju might have diverted funds from Satyam and invested in some firms and bank accounts in those countries.

"Many foreign nations do not allow outside investigating agencies to probe in their countries. If any country requests its counterparts, they depute a team of police officials which will investigate based on the information provided by CID,'' a CID officer said.

Even if CID follows the normal procedures and protocol to route the request through the Interpol to the respective government, it might take more than a year, sources said.

Officials say apart from unearthing benami accounts and firms, it is also important to get information about bank accounts, investments and properties in foreign countries in the over Rs 7,800 crore fraud.

"Our investigations revealed that Raju inflated the head count of employees with Satyam. Apart from checking the employee database, information pertaining to accounts and properties need to be checked in various countries,'' a police officer said.

"This information is crucial for establishing the tainted money trail - diversion of funds, fudging of accounts and fraud - since criminal cases have been booked against the Satyam top brass," a CID officer said.

The CID, which has started parallel investigations in the fudging of accounts by Ramalinga Raju, his brother Rama Raju and others with SEBI and SFIO, fears the Centre might not move fast on their request.

To carry out a probe in a foreign country, the Andhra Pradesh police have to obtain Letters Rogatory (Letter of Request) from the court hearing the case. For this, the investigating officials have to provide prima facie information that Ramalinga Raju and Satyam have accounts and assets in foreign countries. After getting the Letters Rogatory, it has to be sent to the respective country through Interpol in New Delhi. This communication needs clearance from the Union home ministry and the external affairs ministry. The letter would be sent to the Indian Embassy of that country which will forward it to the government concerned through external affairs ministry of that country.

"As of now, we are scrutinising documents and information collected from various offices here. Once we get some clarity, we will formulate a plan on how to go about investigation in foreign countries,'' a senior CID official said.