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Satyam Raju admits to fund diversion

Raju admits to fund diversion

HYDERABAD: Former Satyam chairman B. Ramalinga Raju reportedly confessed to having diverted funds from the company to two other entities, Maytas Properties and Maytas Infra, promoted by his sons.A top police source indicated that the fudging of accounts, as admitted by Mr. Raju in his letter to board of directors, was apparently a red herring and the fraud encompassed land transactions running into hundreds of acres. The questioning by CID sleuths is understood to have yielded these crucial leads.

Meanwhile, the interrogation of his brother Rama Raju and former Chief Financial Officer of the company, Srinivas Vadlamani, continued for the third day on Tuesday at the DGP’s office.

Police sources said that there was “good cooperation” by the three accused and the investigating officials were satisfied by the replies given by them.

The sources denied that they had not cooperated and said the interrogation would continue on Wednesday when the four-day police custody of the accused ends.

Text Source . courtesy : The Hindu

The former Chairman of Satyam Computer, Mr B.Ramalinga Raju, being taken to CID police custody from the Chanchalguda Central prison in Hyderabad on Sunday. - Satish. H