New Delhi, September 13: The CBI will soon file a second chargesheet against former disgraced Chairman of Satyam Computer B Ramalinga Raju as it claimed to have unearthed more financial frauds like siphoning off money from the company, which may have caused loss to the shareholders.
Sources in the CBI said that Raju’s confessional statement after the scam came to light earlier this year was an attempt by him to divulge only what he wanted to, while keeping other alleged financial frauds under wraps.
The sources said the investigators had found some more clues of alleged financial frauds of siphoning off money from Satyam and re-routing it to other front companies floated by the accused.
The agency, on April 7, had filed a chargesheet against Raju and eight others under various sections of the Indian Penal Code for cheating and forgery.
The CBI had submitted 1,532 original documents of bank transactions and 65,000-pages of other documents, which included the statements of 432 witnesses in the case along with the chargesheet.
The sources said a close scrutiny of the documents showed siphoning of money to some tax haven countries and later re-routing it back into the country. The Agency has also sought permission to investigate the overseas findings of the scam-tainted computer firm.
The agency is also probing the role of a prominent stock broker for alleged management of funds of the firm, which necessitates further investigation.
In a related move, a team of the US capital market regulator, Securities and Exchange Commission has completed in India its probe into the multi-crore fraud case.
The SEC team had detailed discussions with the CBI, specifically on the role of auditors in the scam.
During the discussions, the SEC team looked into particular details about the way accounts were allegedly fudged and at the role of the accounting firms.
The SEC team had come to India following filing of over a dozen class action lawsuits in the US against the promoters and managers of the IT firm on behalf of investors, who purchased American Depository Receipts of the company between January 6, 2004 (the listing date in the US) and January 6, 2009 (the day before Raju’s letter).
In these lawsuits, Satyam Computer, its promoters and management were charged with duping thousands of American investors of billions of dollars by artificially inflating share prices.
Satyam was also charged with deceiving the investors on its business, finances and the intrinsic value of shares, leading them to purchase its shares at artificially inflated prices.
Trading on Satyam ADRs was suspended on January 7, after it plunged by over 90 per cent to USD 0.85 in pre-market trade from USD 9.35 in the previous day. It declined further to USD 0.78 on January 12 after trading was resumed.
The market value also plunged from over three billion dollars to below 400 million dollars.
The Satyam fraud, running into around Rs 9,000-crore, came to light in January this year after Raju disclosed that he had falsified profits for years and created fictitious assets.
The company has been sold to Tech Mahindra and rechristened as Mahindra Satyam.
The CBI will soon file a second chargesheet against former disgraced Chairman of Satyam Computer B Ramalinga Raju as it claimed to have unearthed more financial frauds like siphoning off money from the company, which may have caused loss to the shareholders.
Sources in the CBI said that Raju’s confessional statement after the scam came to light earlier this year was an attempt by him to divulge only what he wanted to, while keeping other alleged financial frauds under wraps.
The sources said the investigators had found some more clues of alleged financial frauds of siphoning off money from Satyam and re-routing it to other front companies floated by the accused.
The agency, on April 7, had filed a chargesheet against Raju and eight others under various sections of the Indian Penal Code for cheating and forgery.
The CBI had submitted 1,532 original documents of bank transactions and 65,000-pages of other documents, which included the statements of 432 witnesses in the case along with the chargesheet.
The sources said a close scrutiny of the documents showed siphoning of money to some tax haven countries and later re-routing it back into the country. The Agency has also sought permission to investigate the overseas findings of the scam-tainted computer firm.
The agency is also probing the role of a prominent stock broker for alleged management of funds of the firm, which necessitates further investigation.
In a related move, a team of the US capital market regulator, Securities and Exchange Commission has completed in India its probe into the multi-crore fraud case.
The SEC team had detailed discussions with the CBI, specifically on the role of auditors in the scam.
During the discussions, the SEC team looked into particular details about the way accounts were allegedly fudged and at the role of the accounting firms.
The SEC team had come to India following filing of over a dozen class action lawsuits in the US against the promoters and managers of the IT firm on behalf of investors, who purchased American Depository Receipts of the company between January 6, 2004 (the listing date in the US) and January 6, 2009 (the day before Raju’s letter).
In these lawsuits, Satyam Computer, its promoters and management were charged with duping thousands of American investors of billions of dollars by artificially inflating share prices.
Satyam was also charged with deceiving the investors on its business, finances and the intrinsic value of shares, leading them to purchase its shares at artificially inflated prices.
Trading on Satyam ADRs was suspended on January 7, after it plunged by over 90 per cent to USD 0.85 in pre-market trade from USD 9.35 in the previous day. It declined further to USD 0.78 on January 12 after trading was resumed.
The market value also plunged from over three billion dollars to below 400 million dollars.
The Satyam fraud, running into around Rs 9,000-crore, came to light in January this year after Raju disclosed that he had falsified profits for years and created fictitious assets.
The company has been sold to Tech Mahindra and rechristened as Mahindra Satyam.
–Agencies