Nine charged over Satyam fraud

Indian Central Bureau of Investigation charges nine including Satyam founder and brothers over fraud

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By  Mark Sutton Published  April 8, 2009

Indian police have charged nine men in relation to the Satyam fraud, it was announced today.

The nine include former Satyam chairman Ramalinga Raju, his brother former managing director B Rama Raju; former CFO S Vadlaman and another brother B Suryanarayana Raju, promoter and director of SRSR Advisory Services. Two auditors from PricewaterhouseCoopers, S Gopalakrishnan and S Talluri, as were three other senior members of Satyam’s finance team, G Ramakrishna; D Venkatapati Raju; and Srisailam Chetkuru who were arrested earlier this week.

The Indian Central Bureau of Investigation (CBI) said that the men faced a number of different charges, including criminal conspiracy, cheating, forgery, falsification of accounts and causing the disappearance of evidence.

The three men arrested this week are a VP, a senior manager, and an assistant manager of the company’s finance department. A CBI statement said that the three were “arrested for their active role in perpetration and involvement in the crimes committed by the accused already arrested in this case”.

In January, Ramalinga Raju admitted falsifying the company’s balance and overstating earnings by as much as $1 billion, although investigators have since said that the true amount involved could be closer to $2 billion.

Satyam is due to open bids for a majority shareholding in the company on Monday, as it looks to secure its financial future. A number of bids have been received, despite the fact that the company admits it cannot be sure of its losses at this time.

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