Raju’s siphon may have used tax havens: SFIO | business | Hindustan Times
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Raju’s siphon may have used tax havens: SFIO

SFIO has stumbled upon details of how Raju siphoned funds raised through public share issues and other means to tax havens including Mauritius and those located on the North American and Carribean coasts.

business Updated: Apr 19, 2009 21:57 IST

Much before global policy-makers woke up to rising menace of siphoning of funds through tax havens, Satyam Computer Services founder chairman B.Ramalinga Raju laundered crores of rupees through various tax-friendly countries spread across the globe, suggest investigators probing the country’s biggest corporate fraud.

The Serious Frauds Investigations Office (SFIO) has stumbled upon details of how Raju siphoned funds raised through public share issues and other means to tax havens including Mauritius and those located on the North American and Carribean coasts.

In its investigation report to the ministry of corporate affairs SFIO sleuths have particularly alluded to how funds raised through Maytas Infrastructure’s public issue that raised Rs 327 crore in 2008-09 was diverted to various entities based in tax havens. Maytas is controlled by the Raju family.

“While examining the details of the issue, it is found that out of the total issue of 88.50 lakh shares, 33.85 lakh shares were allotted to foreign institutional investors (FIIs), and most of them ( 38.25 per cent) are Mauritius-based entities,” said the report, a copy of which is with HT.

Though many well-known FIIs do take the Mauritius route, the SFIO said categorically that Raju siphoned off substantial amounts of funds from Satyam over several years. “A part of these funds appears to have been laundered abroad,” it said.

“It is, therefore, suspected that the money laundered abroad by Raju and his family members is routed through various tax haven destinations,” the report said.