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.