Raju sent to central prison; CFO Vadlamani arrested

Hyderabad/New Delhi, Jan 10 (PTI) Satyam's disgraced
founder Ramalinga Raju and his brother Rama Raju were Saturday
sent to judicial custody for 14 days while the CFO was picked
up for questioning, as the government and regulator SEBI
huddled in Delhi to put a new management together to run the
IT company.

Raju, who three days ago disclosed a financial fraud in
the company running into thousands of crores over several
years, and his brother were produced before the 6th Chief
Metropolitan Magistrate who remanded them to judicial custody
till January 23, their lawyer Bharat Kumar said.

In Delhi, Securities and Exchange Board of India (SEBI)
Chairman C B Bhave called on Corporate Affairs Minister Prem
Chand Gupta to discuss coordinated action against Satyam -
whose profits Raju admitted to inflating over the years -
besides nominating new directors to the company's Board.

Gupta apprised Prime Minister Manmohan Singh on the
developments. Andhra Pradesh Chief Minister Y S Rajasekhara
Reddy too called Singh to update him on the Satyam front,
which the government has said dented corporate India's image
globally.

The Company Law Board also asked Satyam's interim
management not to implement the decisions of the now-disbanded
board, but allowed it to continue with the business.

"We have been asked by the Company Law Board not to
implement the decisions of the Board... The team which was
constituted recently is continuing its work," Satyam Head
Global Marketing and Communications Hari Thalapalli said.

Inspector General of Police (CID) V S K Kaumudi said
Satyam's CFO Vadlamani Srinivas has been picked up for
questioning and interrogation was on in the DGP's office.

The Raju siblings were held late Friday night and after
several hours of quizzing were produced before a magistrate at
the judges quarters in Secunderabad.

The magistrate on his own directed medical treatment to
be provided to Raju, whose BP was fluctuating abnormally,
according to Kumar. The authorities at Chanchalguda central
prison will arrange Raju's health to be monitored constantly.

Raju, 54, had in the morning complained of chest pain and
uneasiness, following which he was subjected to a medical
check-up.

Kumar said he would file a petition on Monday for bailing
out Raju, a resident of Hyderabad's posh Jubilee Hills. Asked
on what grounds the bail would be filed, the lawyer said:
"Those grounds will be stated in the bail petition."

After the magistrate's order, the Rajus were whisked away
in a van with tinted glasses while police kept the media away
by barricading the area.

A case has been filed against Raju under sections 120-b
(criminal conspiracy), 406 (criminal breach of trust), 420
(cheating), 468 (forgery for cheating) and 477-a (fraudulent
cancellation of securities) of IPC.

Raju had on Wednesday disclosed a financial fraud in the
company to the tune of Rs 7,800 crore by inflating profits and
showing fictitious assets where none existed. The company's
scrip has fallen nearly 80 per cent since the revelation.

Teams from SEBI and Serious Fraud Investigation Office of
Corporate Affairs Ministry are camping in Hyderabad to probe
Satyam executives. The police have asked them to seek court
permission to quiz Raju.

Chartered accountants regulator ICAI Saturday issued
show-cause notice to Satyam's auditor Price Waterhouse on the
accounts fudging. "We have asked PwC to reply within 21 days,"
ICAI President Ved Jain said.