Satyam Raju bail cancelled by Supreme Court | Ramalinga Raju bail cancelled

Satyam Raju bail cancelled by Supreme Court | Ramalinga Raju bail cancelled

The Supreme Court has ordered former Satyam chairman Ramalinga Raju and five others to surrender by November 8.

Raju was granted bail in August by the Andhra Pradesh High Court. The Supreme Court has over-ruled that decision. It has also ordered a court handling the Satyam case to complete its trial by July 31, 2011.

Raju, the founder of Satyam, was arrested in January 2009 for one of India’s biggest corporate scams, worth more than Rs. 7000 crores.

The Satyam scandal had come to light when Ramalinga Raju had confessed to falsifying accounts in his letter to the board members and SEBI. Raju had confessed to manipulating the company’s balance sheet to inflate margins. He had infamously said, “It was like riding a tiger, not knowing how to get off without being eaten.”

Tech Mahindra, India’s fifth largest IT Company took over Satyam in April 2009 in a competitive bidding.

However, in a bizarre U-turn, Raju backed out from that confession a year-and-a-half later, claiming that it was in fact a resignation letter.

After his arrest, Raju was hospitalised in September 2009 following a heart attack. He was granted bail by the Andhra Pradesh High Court in August this year.

The CBI has maintained that Raju’s letter was a voluntary disclosure of the fraud and claims that he may influence key witnesses and tamper evidence if let out on bail.

Source: NDTV

Posted by musicking on Oct 26 2010. Filed under Breaking News, Business news. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry