Its one tough weekend for Satyam Computer Services bosses B Ramalinga Raju and B Rama Raju, whose fall from grace has come as a sock in the face for the much touted ‘India Inc.’, were grilled by sleuths of the Crime Investigation Department (CID) in connection with a Rs.70 billion (1.43 billion) fraud in the company.
The brothers were questioned by Inspector General of Police (Economic Offences Wing) VSK Kaumudi and other CID officials through the night, unnamed police sources were reported as saying by IANS.
Ramalinga Raju's lawyer S Bharat Kumar says the duo was questioned for over three hours.
Ramalinga Raju is the founder and former chairman of Satyam Computer Services while his brother and Rama Raju is the former managing director of what was India’s fourth largest IT company.
Satyam, ironically, takes its name from a Sanskrit word that translates into ‘truth’.
Ramalinga Raju, complained of uneasiness during the interrogation and police called a doctor to have him examined.
He was reportedly questioned on the confession he made in his statement Wednesday while resigning as chairman of the company.
Sources say the CID was trying to kick up admissible ‘dirt’ against the brothers who are scheduled to be produced before a magistrate.
The CID will present the two before a magistrate at his residence as Saturday as Courts are closed due to a holiday on Saturday, and seek their custody.
The defense counsels however will cite Ramalinga Raju’s medical history to request the magistrate to order police to render necessary medical assistance by admitting him to a hospital.
The brothers, arrested on charges of cheating and forgery after admission of inflated and non-existent revenues in accounts, spent the night in custody at the Andhra Pradesh police headquarters in Hyderabad.
According to police the former Satyam bosses were booked under non-bailable provisions of the Indian Penal Code (IPC) and face charges with a maximum punishment of up to 10 years.
Speaking to reporters on Friday night IGP Kaumudi had said that both the accused would be produced before a magistrate within 24 hours.
Legal experts rule out possibilities of the duo earning bail for at least the next 14 days. Ramalinga Raju's counsel, however, said a bail petition would be moved after the Rajus were produced in court.
The Rajus accompanied by their lawyer drove to the police headquarters around 10 pm Friday to surrender but the two were arrested by the CID, which sought to portray the arrests as ‘tough action.’
According to agencies, the duo has been booked for "criminal breach of trust, criminal conspiracy, cheating, falsification of records and forgery".
The CID had booked a criminal case against them on Friday night.
The case was, reportedly, registered on a complaint by Leela Mangat, a Satyam shareholder.
She charged that the 200 Satyam shares she held had suffered huge losses due to Ramalinga Raju's action.
Though, Ramalinga Raju admitted to the massive fraud in the company Wednesday, police had maintaining that the duo could only be arrested after a complaint was filed against them.
Kaumudi said the arrests would not hinder independent investigations being carried into the matter by the Registrar of Companies and the Securities and Exchange Board of India (SEBI).
SEBI, the market regulator, had Friday served summons on Ramalinga Raju and his lawyer and said that the former would appear before SEBI officials at 4 pm Saturday. Following the arrest, Raju is now likely to be questioned by SEBI officials while he is in CID custody.
Ramalinga Raju's lawyer told reporters that SEBI would now have to seek legal permissions to question him.
The SEBI team has been investigating into the fraud since Thursday and has already checked account books at Satyam offices in Hyderabad.
Sources say, the CID has not yet ruled out the arrest Vadlamani Srinivas, who resigned as chief financial officer (CFO) Thursday.
His whereabouts are not yet known.
Chief Minister YS Rajasekhara Reddy had ordered probe by CID Wednesday to "look at the criminal angle into the entire episode".
The CID stepped up investigations following criticism by opposition parties triggered the storm by accusing the ruling Congress for taking a soft stance over the matter.
(Update)
The Raju Brothers were later sent to judicial custody tll January 23.
The Chief Financial Officer of the company Vadlamani Srinivas was also arreste on Saturday evening and taken to the CID office, he is being viewed as a co-conspirator of Raju.
The brothers were questioned by Inspector General of Police (Economic Offences Wing) VSK Kaumudi and other CID officials through the night, unnamed police sources were reported as saying by IANS.
Ramalinga Raju's lawyer S Bharat Kumar says the duo was questioned for over three hours.
Ramalinga Raju is the founder and former chairman of Satyam Computer Services while his brother and Rama Raju is the former managing director of what was India’s fourth largest IT company.
Satyam, ironically, takes its name from a Sanskrit word that translates into ‘truth’.
Ramalinga Raju, complained of uneasiness during the interrogation and police called a doctor to have him examined.
He was reportedly questioned on the confession he made in his statement Wednesday while resigning as chairman of the company.
Sources say the CID was trying to kick up admissible ‘dirt’ against the brothers who are scheduled to be produced before a magistrate.
The CID will present the two before a magistrate at his residence as Saturday as Courts are closed due to a holiday on Saturday, and seek their custody.
The defense counsels however will cite Ramalinga Raju’s medical history to request the magistrate to order police to render necessary medical assistance by admitting him to a hospital.
The brothers, arrested on charges of cheating and forgery after admission of inflated and non-existent revenues in accounts, spent the night in custody at the Andhra Pradesh police headquarters in Hyderabad.
According to police the former Satyam bosses were booked under non-bailable provisions of the Indian Penal Code (IPC) and face charges with a maximum punishment of up to 10 years.
Speaking to reporters on Friday night IGP Kaumudi had said that both the accused would be produced before a magistrate within 24 hours.
Legal experts rule out possibilities of the duo earning bail for at least the next 14 days. Ramalinga Raju's counsel, however, said a bail petition would be moved after the Rajus were produced in court.
The Rajus accompanied by their lawyer drove to the police headquarters around 10 pm Friday to surrender but the two were arrested by the CID, which sought to portray the arrests as ‘tough action.’
According to agencies, the duo has been booked for "criminal breach of trust, criminal conspiracy, cheating, falsification of records and forgery".
The CID had booked a criminal case against them on Friday night.
The case was, reportedly, registered on a complaint by Leela Mangat, a Satyam shareholder.
She charged that the 200 Satyam shares she held had suffered huge losses due to Ramalinga Raju's action.
Though, Ramalinga Raju admitted to the massive fraud in the company Wednesday, police had maintaining that the duo could only be arrested after a complaint was filed against them.
Kaumudi said the arrests would not hinder independent investigations being carried into the matter by the Registrar of Companies and the Securities and Exchange Board of India (SEBI).
SEBI, the market regulator, had Friday served summons on Ramalinga Raju and his lawyer and said that the former would appear before SEBI officials at 4 pm Saturday. Following the arrest, Raju is now likely to be questioned by SEBI officials while he is in CID custody.
Ramalinga Raju's lawyer told reporters that SEBI would now have to seek legal permissions to question him.
The SEBI team has been investigating into the fraud since Thursday and has already checked account books at Satyam offices in Hyderabad.
Sources say, the CID has not yet ruled out the arrest Vadlamani Srinivas, who resigned as chief financial officer (CFO) Thursday.
His whereabouts are not yet known.
Chief Minister YS Rajasekhara Reddy had ordered probe by CID Wednesday to "look at the criminal angle into the entire episode".
The CID stepped up investigations following criticism by opposition parties triggered the storm by accusing the ruling Congress for taking a soft stance over the matter.
(Update)
The Raju Brothers were later sent to judicial custody tll January 23.
The Chief Financial Officer of the company Vadlamani Srinivas was also arreste on Saturday evening and taken to the CID office, he is being viewed as a co-conspirator of Raju.
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