Monday, March 9, 2009

Ramalinga Raju in federal crime bureau custody



Ramalinga Raju and four others have been sent to the custody of India's federal crime bureau for investigation into the country's biggest corporate scandal, the bureau said.


Ramalinga Raju, his brother and former Satyam managing director Rama Raju, and chief financial officer Vadlamani Srinivas will remain in the custody of the Central Bureau of Investigation (CBI) for seven days from Tuesday, following a court order, the CBI said.


Two former officials from Satyam's auditing firm Price Waterhouse, S. Gopalakrishnan and Srinivas Talluri, have also been sent to CBI custody by a court in the southern Indian city of Hyderabad, it said in a statement on Monday.


Satyam has been battling for survival since Ramalinga Raju resigned as chairman on Jan. 7, revealing profits had been overstated for years and that $1 billion of cash and bank balances on the company's books did not exist. The five men were all arrested later that month.


The CBI took over the fraud investigation last month from the police in Andhra Pradesh state, whose capital is Hyderabad.


The bureau's statement said several documents related to the case had been collected and witnesses had been examined.


Satyam kicked off a bidding process on Monday to sell a majority stake to regain the confidence of its clients and staff, and two potential suitors quickly confirmed they would join the race for the tainted outsourcer.




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