Rajus in Judicial Custody, Cops Seek ‘Truth’ in Satyam

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.

Israeli Shell Hits Gaza Home, Nine Killed

Israeli artillery continue to blast away at international criticism and peace initiatives to pound targets and advanced closer to Gaza City on Saturday. The day's bloodiest incident saw an Israeli shell land outside a home in the northern Gaza town of Jebaliya, killing nine people.

Paramedics say the nine casualties were from the same clan and included two children and two women.

"Residents brought them to the hospital in a civilian car, they put them all in the trunk because their bodies were mangled, we identified them a little after separating their bodies in the morgue," hospital administrator Adam Hakim was quoted saying by Associated Press website.

The Israeli army did not comment on the incident.

In a separate incident a Palestinian woman was killed when Israli jets raided the southern town of Rafah.

The aircraft attacked more than 40 targets throughout Gaza, striking several of Hamas’ strategic installations and infrastructure.

Israel faces mounting international criticism for the huge civilian casualties in the fighting.

Palestinian medical officials say more than 800 Palestinians, including 400 odd civilians, have been killed since the Israeli offensive started on December 27.

Thirteen Israelis have been killed — four of them by Hamas rockets, the rest in battle in Gaza. Five soldiers were wounded in Saturday's fighting.

Israel has dismissed the Security Council resolution passed Thursday as impractical, while Hamas, whose government in Gaza is not recognized, is angry it was not consulted over the diplomatic efforts.

UN Secretary-General Ban Ki-moon spoke with Israeli Prime Minister Ehud Olmert by phone on Friday and told the prime minister that he was disappointed the violence was continuing in disregard of the resolution, according to Ban's office.

Israel says any cease-fire must include assurances that Hamas will halt attacks and end the smuggling of weapons into Gaza.

Hamas says any cease-fire deal that does not include the full opening of Gaza's border crossings will not be acceptable.

The UN resolution emphasized the need to open all crossings, which Israel and Egypt have kept sealed since Hamas militants forcibly seized control of the territory 18 months ago.

Israel, however, opposes the step as it would strengthen Hamas grip over the territory.

With civilian death toll swelling protests continue in the Middle East and in Europe.

In Washington, Secretary of State Condoleezza Rice said it is difficult to protect civilians in a place as densely populated as Gaza — an area just 25 miles long and roughly six miles wide.

"It's also an area in which Hamas participates in activities like human shields and using buildings that are not designated as military buildings to hide their fighters," she told reporters.

Seven Hamas officials crossed into Egypt on Friday through the Gaza border crossing at Rafah, on their way to Cairo for Egyptian-hosted negotiations on a truce with Israel.


(Agency Inputs)

Stop Talking Surgical Strikes: Musharraf

Deserted by his camp followers and caught in a political squeeze by his opponents, former military ruler Pervez Musharraf on Saturday vent frustration against India. "India should not talk rubbish like surgical strikes. Our forces are not sitting idle and have full capacity to retaliate to any level of aggression."

The venom spitting may well be construed as Musharraf’s crawl back into the political arena after twiddling his thumbs on the sidelines since his party suffered huge losses at the hustings and his subsequent ouster from the presidential palace.

Speaking to reporters minutes before he boarded a flight to the US, where he is scheduled to deliver a series of University lectures, Musharraf departed from protocol over the options weighed by India but steered clear of criticizing Islamabad for its handling of the diplomatic crises.

Obviously unaware of what the deaths of over 170 citizens mean in a country like India or even the answerability straddling a democratically elected government in a sovereign state, Musharraf questioned "Why they (Indians) are again and again talking of surgical strikes? Why can't Pakistan say the same."

Musharraf said his government had tried its best to develop friendly relations with the eastern neighbour. "I believe relations were going fine with India until the Mumbai attacks," he said.

"The only way to resolve the mystery of the Nov 26 attacks is to hold joint investigations," he added.

He said he would not comment on the performance of the government and neither would he compare it with his government.

Musharraf ruled Pakistan for nine and a half years after dismissing the elected government of Nawaz Sharif in October 1999, when Musharraf was the chief of army staff.

The former president said his government had never authorised any drone strikes inside Pakistan by the US-led forces. "It was agreed that the US or the NATO forces can strike upto the Pakistan-Afghanistan border and would not enter the Pakistan territory," he said.
Musharraf said the West asking Pakistan to "do more" on the terrorism front was "beyond understanding".

"Pakistan has done its best against terrorism and we are the worst victim of terrorism and still we are being targeted," said Musharraf.

This is his second foreign visit since his resignation. "I'll continue to visit foreign countries as I have invitations from friends, family and some international institutions," he said.

Musharraf’s visit to the US comes amid a widening rift between President Asif Ali Zardari and his once trusted aide and Prime Minister Yousuf Raza Gilani and may well result in reprieve for Gilani.

I Will Contest LS Polls: Shekhawat

Attempts by the party leadership to wean him away from electoral politics notwithstanding, former Vice-President Bhairon Singh Shekhawat continued to stick to his guns on Saturday and reiterated that he would definitely contest the forthcoming Lok Sabha election if his health permitted.

Shekhawat’s decision to contest the polls has caused a storm in the BJP, especially as a section within the party perceives of Shekhawat as a threat to the NDA prime ministerial hopeful LK Advani.

Responding to queries, Shekhawat said he was yet to decide the constituency and the party in the event of his entering the fray.

Launching a crusade, the former BJP veteran has demanded a probe into allegations of corruption to the tune of Rs 22,000 crore, levelled by the Congress, against the previous Vasundhara Raje government in Rajasthan.

Shekhawat, speaking to the media in Jaipur after traveling through several villages as part of his anti corruption campaign, said the response of the people to his mission was wonderful.

Terror Evidence Not Credible: Pak

Over a week after New Delhi handed over a ‘dossier’ on Mumbai terror strikes to Pakistani high commissioner, Pakistan yet again flopped into a denial mode dismissing the evidence as “not credible” and accusing India of pushing the region towards war.

Pakistani minister of state for foreign affairs Malik Amad Khan and foreign secretary Salman Bashir aired the government’s view of the evidence provided by India before the foreign relations committee of the National Assembly, the lower house of Parliament in Pakistan.

According to reports, they dismissed the evidence and said that Pakistan wants “credible evidence” in accordance with the law. But the existing confusion within Islamabad was apparent as different opinions were expressed by different persons.

Even as the foreign secretary and minister called the evidence “not credible,” president’s Zardari’s office said that the evidence was still being examined.

Sanjay or Manyata - Dutts the Word for SP

With legal implications pricking away its boastful plans to field Bollywood icon Sanjay Dutt from the Lucknow parliamentary constituency, the Samajwadi Party (SP) on Saturday said if the Court refused to allow Snjay to contest the elections, the party ticket would go to his wife Manyata.

The SP on Saturday moved court to seek permission for Sanjay’s candidature.

Maverick superstar Sanjay’s huge fan base in the city has scaled greater heights with the recent ‘Munnabhai’ series.

Under pressure from Mayawati led BSP, the SP is counting on Dutt’s star equity to ensure victory in the state capital.

The cloud over Sanjay’s candidature still looms as he was convicted under Arms Act and is currently out on bail.

Manyata, once a little known Bollywood starlet, shot to fame after her marriage to Sanjay in February last year. The marriage, Sanjay’s third and her second, triggered a controversy, with her ex-husband claiming her to still be his wife.

Omar Assigns Portfolios

A day after he assumed office at the helm of an NC-Congress alliance government, Chief Minister Omar Abdullah Saturday assigned several key portfolios to cabinet ministers who were administered oath of office and secrecy on January 6, but kept the portfolio of Home with himself.

Deputy Chief Minister and senior Congress leader Tara Chand will hold the portfolios of Housing, Urban Development, Municipalities, Elections, Printing and Stationery.

Senior National Conference leader Abdur Rahim Rather will hold the portfolios of Finance, Law and Parliamentary Affairs.

Former Jammu Kashmir Pradesh Congress Committee Peerzada Muhammad Sayeed will look after School Education and Public Enterprises Department.

Ali Muhammad Sagar who was elected to the Legislative Assembly for the third consecutive term was entrusted with Rural Development and Panchayats.

Veteran Gujjar leader from NC Mian Altaf Ahmad will hold the portfolios of Forests, Environment and Ecology.

Another Gujjar leader from the Congress, Taj Mohuiddin will look after Public Health Engineering, Irrigation and Flood Control.

During the previous Peoples Democratic Party-Congress coalition government, Mohiuddin held portfolios of Consumer Affairs and Public Distribution.

Senior Congress leader from Ladakh Nawang Rigzin Jora will hold the portfolios of Tourism and Culture.

NC leader from Jammu region Surjit Singh Slathia will be responsible for Industries, Commerce, Labour and Employment.

Sham Lal Sharma will hold portfolios of Health, Horticulture and Floriculture.

All other portfolios remain with the chief minister.

Zealous Cops Fire Shots at IGIA

The after effects of the Mumbai terror strikes are beginning to show on security personnel in the country, CISF personnel stationed at Delhi’s IGI Airport opened fire in the wee hours on Saturday to stop two men from running away, after they received a report that the men had been sitting near Gate No 14 for over two hours.

According to sources, the CISF personnel on duty near Gate No 14 beside the Jaipur railway line were informed by a railway linesman about 0110 hours that two men were sitting near the airport boundary wall since about 1100 hours.

As the guards approached the dup, they jumped up and ran toward a white Skoda car parked on the other side of the tracks.

The official on duty first fired in air from this pistol but when the men did not stop, he fired two shots at the rear wheels of the vehicle. "Meanwhile, CISF guards posted further up the road, heard the commotion and came running towards the tracks. When the men saw that they had been cornered, they stopped. Nobody was hurt in the incident,'' CISF spokesperson Rohit Katiyar was quoted as saying..

The men, identified as 30-year-old Hemant Malik, a resident of Najafgarh and 25-year-old Sachin, a resident of Saklawati Village near Dwarka, were reportedly consuming alcohol when they were caught.

Sources said suspicion was aroused when the men attempted to flee from the spot. "Even though it was not in the airport premises, but the fact that the men tried to escape on being accosted by security officials raised suspicion which is why the official on duty had to fire,'' said sources.

The two were handed over to Palam Village police station where they were questioned till evening. "Hemant owns a mobile shop in Najafgarh while Sachin assists his father in his business. Both were interrogated and once their antecedents established, they were let off. A report on the case will be submitted to the CISF shortly,'' said Ajay Kashyap, joint commissioner of police (southern range).

Soren Resignation in the Offing

Known for his abilities to latch on to power Jharkhand chief minister Shibu Soren on Saturday said he would resign in a day or two after discussing an alternative arrangement with his party leaders. Soren had earned the post after his party lent support to the UPA in the trust vote over the Indo-US nuclear deal.

"I will discuss the matter of an alternative arrangement at the party (JMM) meeting, will go to Delhi today or tomorrow and resign," Soren said in Ranchi.

The JMM president, who returned here after meeting central UPA leadership on Saturday, said an alternative would be found out soon.

Jolly Roger Relents – Sirius Star Crew Released

25 Crew members aboard - Sirius Star - a Saudi-owned supertanker have finally been released by Somali pirates after spending nearly two-month ordeal and will soon be reunited with their families, confirmed the vessel owners while refusing to comment if a ransom ha been paid to secure the release.

"We are very relieved to know that all the crew members are safe and I am glad to say that they are all in good health and high spirits," said ship owners Vela International in a statement.

"This has been a very trying time for them and certainly for their families. We are very happy to report to their families that they will be on their way home soon," the statement added

The ship is worth nearly 150 million dollars and its payload was estimated at a whopping 100 million dollars at the time of the hijacking.

The 330-metre Sirius Star, owned by the Saudi oil giant Aramco, was captured off the east African coast on November 15, in what was the pirates' most daring and largest seizure to date.

A report on the BBC website attributing the inputs to sources suggested that three million dollars were delivered to the pirate group on Thursday.

"I can't comment on this kind of information," a Vela spokesman was quoted as saying by AFP.

The 25 crew members aboard the ship and in captivity included British, Croatian, Saudi, Philippine and Polish nationals, where the ship's captain hails from.

In recent months pirates operating in the Gulf of Aden off the Somali coast, have struck with impunity, targeting some 130 vessels in 2008 alone.