(Repeats story issued late on Wednesday)
* Raju to continue cooperating with investigation - lawyer
* Cannot talk about grounds for bail right now - lawyer
* Raju was in police custody after admitting fraud in 2009
(Adds comments from lawyers)
HYDERABAD, India Aug 18 An Indian court granted
bail to former chairman and founder of outsourcer Satyam
Computer Services SATY.BO in a case of accounting fraud that
turned out to be India's biggest corporate scandal.
Ramalinga 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 over $1.5
Raju had been in police custody since the revelation of the
fraud. A court in the southern Indian city of Hyderabad, where
Satyam is headquartered, granted the bail on Wednesday.
"He has been cooperating with the investigation, he has
been cooperating with the trial, and he will do so without
exception and without any concession," Raju's lawyer Bharat
Kumar told reporters outside the court in Hyderabad.
Kumar said he could not immediately comment on the grounds
for the bail as he was yet to receive a court judgement copy,
but local Indian television channels said Raju was granted bail
on medical grounds.
"The important grounds are that this is a long
incarceration as an under-trial prisoner," Kumar said. "My
client himself surrendered before the police and he cooperated
all through with the investigating agencies and his health is
also not good."
India's federal crime bureau, which has been investigating
the case, will appeal to the apex court after studying the
order, V.V. Lakshmi Narayana, a Hyderabad-based senior official
with the Central Bureau of Investigation (CBI), told Reuters.
In April last year, the bureau had said it had filed
charges against nine people for alleged involvement in fraud at
the outsourcing firm. The charges include criminal conspiracy,
cheating, forgery and falsification of accounts.
Five former Satyam officials were also granted bail in
July. Those included former managing director B. Rama Raju and
former finance chief Vadlamani Srinivas. [ID:nSGE66J0IB]
Satyam was sold to Indian IT firm Tech Mahindra (TEML.BO),
majority-owned by automaker Mahindra & Mahindra (MAHM.BO) and
partly owned by British telecoms operator BT Plc (BT.L), in an
auction in April last year.
It was subsequently renamed Mahindra Satyam, which is also
listed in New York SAY.N. The firm counts General Electric Co
(GE.N), Citigroup (C.N), Cisco Systems (CSCO.O) and
GlaxoSmithKline (GSK.L) among its clients.
Shares in Mahindra Satyam ended 0.5 percent lower at 84.95
rupees and Tech Mahindra closed little changed at 714.70 rupees
in the main Mumbai market .BSESN that rose 1.2 percent.
(Reporting by Devidutta Tripathy, Sumeet Chatterjee; Editing
by Jui Chakravorty and Jon Loades-Carter)