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INDIA BUSINESS WORLD - 1st JANUARY - TO - 15th JANUARY - 2009
SEBI SERVES NOTICE TO SATYAM FORMER CHIEF RAJU
The market regulator Securities and Exchange Board of India (SEBI) served notice at the Jubilee hills residence of Satyam Computer Services former chief B Ramalinga Raju, even as the CB-CID police is preparing the ground for the arrest of Raju in connection with the over Rs 7800-crore fraud.
The SEBI officials, serving the notice, directed the former chief of the beleaguered IT major to appear before it for questioning, official sources said.
Mr Raju’s lawyer Bharat Kumar would appear before the SEBI officials on his behalf as he was indisposed, sources said.
The SEBI team, headed by its Southern Region General Manager A Sunil Kumar, continued its investigation into the book of accounts of the IT major in the wake of Raju’s admission that it had been inflated to the tune of over Rs 5,040 crore. The Registrar of Companies officials also continued their probe into the company affairs.
Meanwhile, police sources said the arrest of Raju was ‘imminent’ in the wake of his admission of financial wrongdoings.
Sleuths of the CB-CID were preparing the ground for his arrest in connection with the serious white collar crime, the sources said, adding, ‘it is only a matter of time.’ With no formal complaint registered with the city Police, the sleuths were looking into the possibility of taking ‘cognizance of the offence suo motu’ and proceed further in the matter.
It may be noted that Raju himself had stated in his letter to the Board that he was ready to face the consequences and was subjecting himself to the laws of the land.
Along with Ramalinga Raju, Company Managing Director Rama Raju had also resigned. Its Chief Financial Officer V Srinivas had quit the company yesterday.
The former Satyam chief had made a last ditch attempt to clear the financial mess by buying out two companies promoted by his sons for 1.6 billion dollars. However, the plan was shelved following widespread opposition from the investor community both within the country and the US.
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