Seeking for an extension of at least two more days of police custody, Crime Investigation Department (CID) counsel and Senior Assistant Public Prosecutor K Ajay Kumar informed the Nampally court on Thursday that besides manipulating the data in the Satyam’s balance sheet, former Satyam Chairman Ramalinga Raju has also manipulated the records of number of employees.
The company record shows that there are 53,000 employees in the company while the actual numbers of employees are only 40,000 as accepted by Raju in his confession letter, said Kumar and asked the court to allow two more days of police custody for further questioning. However, the court only extended the custody till Friday 4.00 p.m.
On the other hand, Raju’s counsel S Bharat Kumar has denied this type of any confession and objected on this allegation by stating that it was a trial by media.
Arguing before the sixth additional chief metropolitan magistrate D Ramakrishna, public prosecutor Kumar added that Raju was withdrawing Rs. 20-crore per month since last five years making it a total of Rs 1,200 crore to pay the 13,000 non-existence employees which were diverted into his family members’ accounts. This diverted money was used to invest in Maytas Infra, Maytas Properties and other sister concerns of Satyam.
Moreover, Ajay also informed the court that Raju had also accepted to transfer thick funds in terms of company’s shares in the name of his brother Suryanarayana Raju and mother Appalanarasamma.
There is also an allegation of having fake Fixed Deposits (FDs) certificates issued by HDFC bank of worth Rs.3,300-crore in the company’s balance sheet. According to CID, Raju backed the FDs with forged bank statements from HDFC Bank’s Bashirbagh branch while Bank has denied issuing any such FD certificates. CID is now seeking the mastermind behind this fake statement. The investigating agency has also written to six other banks to provide details of Satyam transactions.
Besides, public counsel also stated in the court that the founder of Satyam has also admitted to acquire 400 ‘benami’ land deals translating thousands of acres in and around Hyderabad and Ranga Reddy district, which had been registered in the name of his family members and relatives. Most of the deals had been done with the help of Akula Rajaiah, a well-known real estate agent.
Prosecutor has not denied doing insider trading too. But Raju’s Counsel has refuted all the allegations calling it all false imposed on him.
On the expiry of four-day police custody, CID had presented Raju, and Srinivas Vadlamani, the former Chief Financial Officer of Satyam seeking to extend the judicial custody. Both of them were arrested after unearthing of Rs.7,800-crore financial scam in Satyam. It is the biggest ever corporate governance scam in India.
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