CBI to probe into Satyam scam

NI Wire

New Delhi

Tue, 17 Feb 2009: 

In the mega corporate fraud at Satyam Computer Services Ltd., the government has asked Central Bureau of Investigation to investigate into the Rs.7,136 crore Satyam scam, a move came on Monday, five days after the State recommended the Centre for the transfer of case from CID to CBI.

The government orderwhich is required for this purpose, by the state was issued on Feb 13.

The confusion though persisted as the State Home minister K Jana Reddy expressed his ignorance about such an order. Finally on Monday, the Andhra Pradesh government told the high court it had issued government order (GO) entrusting probe into the Satyam fraud to CBI.

The petition in the high court was filed by a Kerala-based Stock Investors Hub, which pointed the investigation being done by the CID as an eyewash exercise and sought the transfer of case into the hands of CBI forthwith.

With CBI there are now four centrally controlled agencies-Serious Fraud Investigation Office (SFIO), Enforcement Directorate (ED), and capital market regulator SEBI- which are investigating in the Satyam scandal.

However, the CBI will comprise that part of the investigation which has been instituted under Indian Penal Code, a government official said and hoped that investigation will be carried out by CBI transparent and fast as the agency is expected to form a special investigation team (SIT) to probe the scam.

The Satyam case is being probed under various laws such as the Companies Act, Foreign Exchange Management Act (FEMA), SEBI Act and IPC.

SEBI is investigating into the Satyam scam and have recorded the statements of B Ramalinga Raju, his brother Rama Raju, and former chief financial officer Srinivas Vadlamani for three days from Feb 6 to 9.

The Serious Fraud Investigation Office also questioned the Raju brothers and Srinivas Vadlamani on Feb 14, and Pricewaterhouse partners and auditors on Feb 15. Meanwhile, the bail plea of PW auditors has been quashed.