Satyam's tainted founder B. Ramalinga Raju, his brother Rama Raju and the company’s former CFO Vadlamani Srinivas will be shifted to police custody from judicial custody for four days from Sunday.
The 6th additional chief metropolitan magistrate granted their custody to the state CID, although the prosecution sought seven days’ detention.
Correspondingly, their bail petition, which was to have been moved on January 19, will now come up on January 22.
In Mumbai, Prime Minister Manmohan Singh described the Satyam episode as a “blot” on India’s corporate image and said the government was determined to get to the bottom of the fraud and punish the guilty.
Asking the industry to prevent fraudulent activities, Singh said India Inc should come out stronger from the Satyam fraud by keeping a close watch on their systems.
“The Satyam episode is a blot on our corporate image. It indicates how far malfeasance in one company can inflict suffering on many and can also tarnish India’s image,” he said at the Economic Times awards function.
The industry, said the PM, should support the government in setting the highest standards “so that the world can say we emerge from the Satyam scandal stronger and more credible. I have no doubt we can do it and we shall do it”.
Meanwhile, in Hyderabad, the newly constituted board of Satyam Services Ltd confirmed that it was scouting avenues for finances and said its priority at the moment was to ensure salaries to the staff on time.
At the end of a marathon board meeting, chaired by Deepak Parekh, the company said in a press statement: “Last week had seen definite improvements on collections.”