Serious fraud probe agency SFIO will move the court this month against disgraced IT czar B. Ramalinga Raju and others over violation of company law in connection with the multi-crore rupee accounting scam in Satyam Computer.
The Serious Fraud Investigation Office (SFIO) will file a complaint petition (equivalent to a chargesheet) before a designated court at Hyderabad later this month.
Raju, his brother Rama Raju, Satyam's ex-CFO Vadlamani Srinivas, and partners of the company's former auditor Price Waterhouse — S Gopalakrishnan and Srinivas Talluri — will be charged for violation of the Companies Act, including generating fake invoices, falsifying account books.
“During this month, the SFIO will begin prosecution on those or those areas of company laws that the SFIO is expected to and have been authorised to proceed with,” Corporate Affairs Minister Salman Khurshid told reporters here.
Raju and others are already facing charges of forgery, cheating and various other sections of IPC for their alleged role in the over Rs 10,000-crore fraud, the biggest ever scam to hit Indian industry.
In January this year, Raju had disclosed fudging accounts of the company. He had, in a letter to Satyam Board, said he had inflated the company's profits for years and created fictitious assets.
Besides the Serious Fraud Investigation Office (SFIO), CBI and the Enforcement Directorate are also investigating the scam including siphoning of money by Raju and others. The SFIO will seek prosecution of Raju and others on alleged 30 violations under different the Companies Act, 1956.
Khurshid said the agency is “dutifully and diligently” pursuing what it is supposed to do in the Satyam case.
The minister, however, said, "We have not been able to track it (siphoning off of money abroad)... So whatever information we have, we have provided to the Enforcement Directorate and CBI."
Earlier sources had said while the SFIO will deal with company law violations, the Central Bureau of Investigation (CBI) will be acting on five or six charges involving criminal offences under the penal code.