Satyam scam: Jail for Raju, sent to judicial custody

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Posted: Saturday, Jan 10, 2009 at 2116 hrs IST
Updated: Saturday, Jan 10, 2009 at 2116 hrs IST

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CBI files second chargesheet in the Satyam scam Spice to move CLB on Satyam sale End-game nears for Satyam, buyers wary

Hyderabad/New Delhi: One more top official of Satyam was on Saturday arrested and disgraced founder Ramalinga Raju and his brother Rama Raju were sent to judicial custody as the government and regulator SEBI huddled in Delhi to put a new management together to run the IT company.

Raju, who three days ago disclosed a financial fraud in the company running into thousands of crores over several years, and his brother were produced before the 6th Chief Metropolitan Magistrate who remanded them to judicial custody till January 23, their lawyer Bharat Kumar said.

The siblings will be treated as ‘C’ class prisoners vastly different from the luxury of their home in the posh Jubilee Hills and will be treated like other prisoners, jail officials said.

Vadlamani Srinivas, Satyam Computer's Chief Financial Officer, who resigned a day after the fraud came to light and which is yet to be accepted, was first picked up in the evening for questioning and was later formally placed under arrest, IG (CID) V S K Kaumudi said.

Srinivas has been arrested on the same charges that have been slapped on the Raju brothers--criminal conspiracy, cheating, use of forged documents, forgery and criminal breach of trust--under the Indian Penal Code, he said.

In Delhi, SEBI Chairman C B Bhave called on Corporate Affairs Minister Prem Chand Gupta to discuss coordinated action against Satyam - whose profits Raju admitted to inflating over the years - besides nominating new directors to the company's Board.

Gupta apprised Prime Minister Manmohan Singh on the developments. Andhra Pradesh Chief Minister Y S Rajasekhara Reddy too called Singh to update him on the Satyam front, which the government has said dented corporate India's image globally.

Comments

» SATYAM

Posted by mark G. Tagwai on 2009-01-29 01:42:22.202982+05:30
IN REGARD TO CRIMINAL LIABILITIES OF AUDITORS AS IN THE CASE OF ENRON, WHAT IS THE POSITION OF THE AUDITING FIRM THAT HAVE BEEN AUDITING SATYAM FOR THE PAST YEARS?

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» Still wid U....

Posted by Siddhant on 2009-01-21 19:49:08.365619+05:30
Let others bark...it was you in the business before and now is the country...No matters what they think, no matter what they say, you keep going but now be truthful and start with a new begining...Its not just me with you but other lakhs of citizens of INDIA too.

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» Financial terrorist

Posted by Peter on 2009-01-11 11:06:51.227688+05:30
Guys, he is not a criminal but a deadly terrorist. The difference is killer terrorists kill people instantly without any pain whereas Raju has destroyed 53,000 employees and n number of share holders who are suffering and dying slowly with pain. Such people such be punished severly.

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» Check the fundamentals please

Posted by Ameet on 2009-01-11 10:24:14.527701+05:30
As usual, we are only scapping the top without ascertaining why and how this fiasco happened. There is a system failure.The fundamentals need to be examined, amongst others, the proceedure of appointment of independent directors, the internal audit reports being given to independent directors, the nexus between the top brass of the corporate and the political class.After Satyam, the auditors of other companies will be rushing to reexamine the records of companies already audited by them. More relevations may be expected.Preventive action is the need of the hour.

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» Arrest of satyam Rajus

Posted by J.KUMAR on 2009-01-11 07:05:10.314842+05:30
WOnder what happened to the auditors of PWC. Definitely they have not adhered to standard Auditing practices. There are atleast two partners of PWC on ICAI central council who should have resigned but have not. How the ICAI can conduct an impartial enquiry as oredered by them on the collusive audit firm.

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» Root cause

Posted by raja on 2009-01-11 06:48:47.734832+05:30
Mumbai attacks

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» pity raju

Posted by ram on 2009-01-11 06:48:01.247668+05:30
i think people should accept the braveness of raju, unl;ike cowards like Tata who lost crores in prohects in singur. Wht does investors do not say anything about Tata? See the way bsuiness is done in Reliance? Just because someone has honestly accepted, regulators are jumping on hum. Is there any ethical corporate governance in India? Tell me a company which does that? I pity Raju and support his early release.He has not taken any money from this mis-accounting process. He has spent huge money on various charoity activities like drinking water project etc. Has govt provided any good water schemes in india? Raju should bounce back. Our polutucuans and administrators are making millions and why no media is asking for that? Is oyur media, judiciary and administrators first of all ethical?

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» ramalingaraju

Posted by divakar on 2009-01-11 06:41:06.011981+05:30
ramalinga raju is a good person.he sacrifice his life 2 the satyam . threw out andhrapradesh we hav 108 ambulance ,once think how they are working,saome of the areas are getting water food and shelter ,thse things r done by satyam industry,to appear his company in the top position he shown the profits which are not their in his company thats y he efffected this much

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» Eulogize who confess (and also bear the consequences of their mistakes)

Posted by Raj on 2009-01-11 02:47:44.86068+05:30
There is a saying for young IAS and IPS officers; It is not question whether they will take bribe or not. It is a question of how long can they resist lure of the first bribe. Same applies for Rich and powerful people; Raju took this "slippery slope" path when he deviated from his (SATYAM-Truth) IT business to Land Business (Opposite of SATYAM-Truth, MAYTAS).To me, it looks like Raju has taken a leaf from YSR's confession of "IDUPULAPAYA ESTATE" scam; if you are powerful and successful, all you have to do is confess and you wonâ€™t be penalized for the crime committed.I would have been proud, if Raju has gone 2 steps beyond his simple confession:1. If he had shown courage and let us know his partners in crime.2. If he had volunteered to handover his personal properties (even if it was 25% or 50%). Imagine what would be plight of the common man and law, if everyone who commits the crime takes this simple route of â€œCONFESS, AND NO PENALTYâ€.

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» Auditors

Posted by Prem on 2009-01-11 02:10:53.341421+05:30
Like Arthur Anderson has gone with the Enron scandal, PwC must be banned, at least within India, and legal action must be taken against all Satyam auditors too.

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