Andhra ready for CBI probe, court snubs Raju bail plea | business | Hindustan Times
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Andhra ready for CBI probe, court snubs Raju bail plea

The Satyam fraud lurched towards a federal probe with the state government offering to hand investigations over to the Central Bureau of Investigation.

business Updated: Jan 29, 2009 10:27 IST
Ashok Das

The Satyam fraud, torn between Andhra Pradesh police and restless securities regulators with no access to main accused B Ramalinga Raju, lurched towards a federal probe with the state government offering to hand investigations over to the Central Bureau of Investigation (CBI).

A local court, meanwhile, dismissed the bail plea of disgraced disgraced founder Raju, his brother Rama Raju and former finance chief Vadlamani Srinivas.

Chief Minister YS Rajasekhar Reddy wrote to Prime Minister Manmohan Singh that he was ready to hand over the reins to CBI because of allegations that his administration was not cooperating with Central agencies.

He said the CID in fact was in regular touch with the Securities and Exchange Board of India, the Registrar of Companies, the Serious Fraud Investigation Office, in addition to Income-Tax authorities.

Reddy, who is said be critics to have friendly ties with the Raju family, said there was a “targeted attack that the state government is interested in diluting the gravity of the case.”

Reddy explained the two-day delay by the Criminal Investigation Department (CID) in taking Raju into custody.

“In the absence of any proper complaint to set criminal law into motion, the CID waited till a complaint was received on 09.01.2009 and the two Raju brothers were taken into custody on the same night,” he said.