Court to decide on Fraud Investigation Office petition Feb 13

HYDERABAD - A city court will take a decision Feb 13 on a petition by the Serious Fraud Investigation Office (SFIO), seeking permission to interrogate founder of Satyam Computer Services B. Ramalinga Raju and four other accused in the Satyam fraud case.

Sixth Additional Chief Metropolitan Magistrate D. Ramakrishna Tuesday heard the arguments on the petition filed by SFIO and posted the matter for Feb 13 for orders.

SFIO has sought permission to interrogate Ramalinga Raju, his brother and former managing director B. Ramaraju, former chief financial officer Vadlamani Sinivas and former auditors of Pricewaterhouse S. Goplakrishnan and Talluri Srinivas.

All the five, arrested in connection with Rs.70-billion (Rs.7,000-crore) fraud, are currently lodged in Chanchalguda central jail here.

The defence counsels opposed the SFIO petition said the body had no legal validity to question the accused. They also pointed out that the petition was moved under the Companies Act.

The court also adjourned to Feb 13 hearing on the petition filed by market regulator Securities and Exchange Board of India (SEBI), seeking permission to quiz Vadlamani Srinivas and the two former auditors.

SEBI has already grilled the Raju brothers in jail for three days last week on the interim orders passed by the Supreme Court.

The same court also posted for Feb 16 orders on the fresh bail petitions of Goplakrishnan and Talluri Srinivas. The counsel for suspended employees of Pricewaterhouse argued that they were not involved in the fraud and hence were entitled for bail.

The earlier bail petitions of the two former auditors were dismissed by the court.

Meanwhile, another magisterial court adjourned to Feb 12 the hearing on the anticipatory bail petition of Ramalinga Raju’s another brother Suryanaryana Raju.

Suryanarayana Raju, director of SRSR Advisory Services, a firm floated by Ramalinga Raju to manage the family’s stake in Satyam, is absconding. He is wanted by the Crime Investigation Department (CID) of Andhra Pradesh police which is probing the massive fraud.


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