Hyderabad: Satyam’s disgraced former chairman B Ramalinga Raju’s arrest seems imminent with the Hyderabad Police gearing up to file a suo motu case against him for showing non-existing cash in the company’s books and keeping investors in the dark.
As per media reports, the final decision rests with Andhra Pradesh Chief Minister Rajshekhar Reddy – who had also called for a preliminary enquiry by CID into the case and could initiate a criminal action.
Earlier, Police sources had said they could not arrest Raju based on his statements and his arrest could be possible only after a complaint is filed against him of criminal intent of the fraud.
On Thursday Raju’s lawyer had denied the reports of Raju being absconding and confirmed that he is very much in Hyderabad. Earlier there were reports that former Satyam chief had fled to Dubai.
The revelation by Raju which has tarnished the image of Indian IT sector and Infosys chief Narayan Murthy asked authorities to take strict action against Satyam to reinstate global trust in the Indian IT companies’.
There are also reports that Satyam is also mulling to axe 10,000 of its employees and also informed them that they will not be paid their salaries from February onward due to shortage of funds in the company.
Satyam shares took a hit on Friday as well when its shares hit the rock bottom and were trading at Rs 18.
Raju was Satyam chairman since 1987 and had stepped down from his post and admitted to frauds in the books to the tune of Rs 7,800 cr. Raju claimed that he shown the wrong figures for the sake of the company and that he had not benefited from it at all.
