Supreme Court grants bail to Satyam founder Raju

NEW DELHI Fri Nov 4, 2011 3:20pm IST

Ramalinga Raju (C), founder and former chairman of fraud-hit Satyam Computers, is escorted from a court in Hyderabad April 9, 2009. REUTERS/Krishnendu Halder/Files

Ramalinga Raju (C), founder and former chairman of fraud-hit Satyam Computers, is escorted from a court in Hyderabad April 9, 2009.

Credit: Reuters/Krishnendu Halder/Files

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NEW DELHI (Reuters) - The Supreme Court on Friday granted bail to Ramalinga Raju, founder and former chairman of outsourcing firm Satyam Computer Services Ltd, in a $1.5 billion financial fraud case, after the Central Bureau of Investigation (CBI) failed to file charges on time.

The CBI did not file a charge-sheet against Raju within the statutory period, according to a court order seen by Reuters.

According to Indian law, charge-sheet against an accused has to be filed within 90 days of arrest.

Raju, a management graduate from Ohio University who founded Satyam in 1987, shocked investors in January 2009 when he said the firm's profits had been overstated for years and assets falsified in a fraud allegedly worth more than $1.5 billion.

In November 2010, he surrendered after the Supreme Court in August cancelled a bail granted to him by a lower court in Hyderabad, where Satyam is based.

In an auction in April last year, Satyam was sold to Indian IT firm Tech Mahindra, majority-owned by automaker Mahindra & Mahindra and part-owned by British telecoms firm BT Plc.

It was subsequently renamed Mahindra Satyam.

(Reporting by R. Venkatraman; Writing by Anurag Kotoky; Editing by Rajesh Pandathil)

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Comments (1)
Ramamurthi wrote:
CBI is famous for such lapses. Either they are overloaded or incapable.
In comparison the US has taken very quick action against Rajaratnam. It is more likely that CBI is being influenced by vested interests both in the private industry and the government. They have made a mess of Bofors, Purulia, Navy war room and many more all to cover the culprits,all having high connections in the government. So far CBI has not solved any case. I think it is better we disband it and get external help like the US. We can probably get the Scotland Yard to take up the cases. Atleast it will be unbiased.

Nov 04, 2011 8:06pm IST  --  Report as abuse
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