SEBI concludes Rajus’ interrogation in jail
By IANSThursday, February 5, 2009
HYDERABAD - The market regulator Securities and Exchange Board of India (SEBI) Friday concluded interrogation of disgraced Satyam Computer Services founder B. Ramalinga Raju and his brother B. Rama Raju in a jail here.
For the third and last day, SEBI officials quizzed the Raju brothers in connection with the Rs.70 billion accounting fraud - the biggest in India’s corporate history.
SEBI south zone general manager Sunil Kumar and other officials left Chanchalguda Central Jail in the evening after grilling the brothers for five hours.
For the second consecutive day, two teams of SEBI officials questioned the Rajus separately. They had grilled only Ramalinga Raju Wednesday, the first day of interrogation.
The Supreme Court had Tuesday allowed SEBI to interrogate the Raju brothers in jail Feb 4-6.
This was the first time that SEBI officials had access to Ramalinga Raju after he confessed the fraud Jan 7 while quitting as the chairman of India’s fourth largest IT services firm.
The Rajus were grilled about insider trading, diversion of Satyam funds to dozens of other companies promoted by their family members and other violations of SEBI rules.
Though SEBI officials refused to divulge the details, they believed to have gathered evidence against the accused for insider trading and diversion of funds. The evidence is likely to be used by SEBI for prosecuting the accused.
