CBI probes 'hawala' transactions in Satyam fraud | business | Hindustan Times
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CBI probes 'hawala' transactions in Satyam fraud

The Central Bureau of Investigation (CBI), probing the multi-million rupees Satyam fraud, has been investigating the role of 'hawala' or money-laundering operators and their transactions related to this case, agency sources said on Thursday.

business Updated: Jul 23, 2009 19:51 IST

The Central Bureau of Investigation (CBI), probing the multi-million rupees Satyam fraud, has been investigating the role of 'hawala' or money-laundering operators and their transactions related to this case, agency sources said on Thursday.

B Ramalinga Raju, Satyam founder and former chairman who has been named in the chargesheet, had fraudulently inflated the number of employees in its offices in India and abroad - creating more opportunities for the use of hawala networks, they said.

"We along with other agencies like the Enforcement Directorate (ED) are probing whether a hawala network was used for huge monetary transactions from abroad as a lot of money was siphoned off from the company and was sent abroad through legal means," said a CBI official investigating the matter.

"We believe the same money have been brought back into the country through non-banking channels," the official added, speaking on condition of anonymity.

Hawala is an illegal exchange of money, including through non-banking channels.

Raju, currently in jail, stunned the corporate world Jan 7 by admitting to a Rs 78-billion (Rs 7,800-crore) accounting fraud. He faces charges of cheating, criminal conspiracy, falsification of records and forgery.

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