YSR wants CBI probe into Satyam fraud

Facing allegations that Govt was soft on Satyam,Andhra CM has decided to seek a CBI probe.

Written by Express News Service | Hyderabad | Published: February 10, 2009 3:23 pm

Facing the Opposition allegations that the Government was soft on Satyam,Chief Minister Y S Rajasekhara Reddy has decided to seek a CBI investigation into the fraud in Satyam Computer Services Limited.

CMO officials said the CM sent a letter to Prime Minister Manmohan Singh on Monday night,recommending that the Satyam investigation be handed over to the CBI.

The CM had already written a letter on January 28 to the Centre,saying the AP Government was open to a CBI probe.

Reddy wrote the second letter after the Government was put on the mat in the state Assembly by TDP president and Opposition leader N Chandrababu Naidu who accused the Government of protecting B Ramalinga Raju and his family by not handing over investigation to the CBI. Naidu wondered how the state CID could handle the investigation when all laws under SEBI,FERA,FEMA and Income Tax were flouted by Satyam.

In his letter,the CM said the fraud was huge and complex and involved various aspects and thus a CBI probe was necessary. He felt since a number of agencies were involved in the investigation,it would be appropriate if the CBI took over the investigation. Besides evidence of fudging of accounts and exaggeration of bank deposits,Satyam had raised money from NBFCs by pledging shares and that more than 300 companies were floated by Ramalinga Raju and his relatives through which insider trading of Satyam shares was done.

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