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CBI focus on family firms

The CBI, which was handed over the probe into the Satyam scam on Monday, will look into the allegation that B. Ramalinga Raju allegedly diverted funds to around 15 front companies controlled by his family.

business Updated: Feb 18, 2009 01:48 IST
Abhishek Sharan

The CBI, which was handed over the probe into the Satyam scam on Monday, will look into the allegation that B. Ramalinga Raju allegedly diverted funds to around 15 front companies controlled by his family. He has also been accused of using an account with a Mauritius-based bank to channel funds to these front companies, including two Maytas firms.

An agency source who requested anonymity told Hindustan Times that Raju had allegedly used the two Maytas firms — Maytas Properties and Maytas Infrastructure — promoted by his family.

“After Maytas Infrastructure acquired the Hyderabad Metro Rail Project worth Rs 12,000 crore, it managed to change the route so that it runs along the outer ring road areas where Raju’s front companies had bought plots. The plots were later sold at much higher prices.”

On cooking the Satyam books, the CBI will probe how the fudged balance

sheets helped Raju personally. “The accounts were fudged to make the balance sheets look good to investors. In fact, thousands of such investors got duped into investing in Satyam.”

Finally, the CBI will examine the allegations that Raju “pocketed salaries meant for 6,000 to 13,000 employees”.

Once the CBI files a FIR, the agency will seek the custody of Raju and the four other co-accused, who are now in the state police custody.