17 Jan : Prime Minister Manmohan Singh on Saturday described the Satyam Computer episode as a blot on India’s corporate image and said the government was determined to get to the root of the fraud.
The event shows that misconduct in one company can affect several others, he said at the Economic Times award function in Mumbai. "The government is determined to unravel the nature of the fraud," Singh said.
Separate probes, including one by the Serious Fraud Investigation Office, is on into the Rs 7,800 crore fraud disclosed by Satyam’s disgraced founder Ramalinga Raju on 7th January.
In a quick intervention, the government disbanded the Satyam board and replaced it by nominating six eminent professionals to run the company, which employs 53,000 people and has presence in 60 countries.
Court sends Rajus, Srinivas to Police custody
A local court on Saturday sent Satyam’s tainted founder Ramalinga Raju, his brother Rama Raju and the company’s former CFO Vadlamani Srinivas to four days police custody from Sunday.
The 6th additional chief metropolitan magistrate granted their custody to the state CID police, who had sought seven days detention of them for further questioning.
The Rajus were arrested on 9th January and have been in judicial custody since Saturday last. Srinivas was arrested on 10th January and sent to judicial remand.
The police had questioned the Rajus on the night of his arrest and sought more time to interrogate him on the Rs 7,800 crore financial fraud he had admitted to in Satyam Computer.
The CID has already searched Raju’s house and his office in Satyam and recovered at least 44 documents.