Govt asks SFIO to inspect money-siphoning angle in Satyam case

Last Updated: Monday, August 17, 2009 - 23:14

New Delhi: The government has asked SFIO,
the investigative arm of the Corporate Affairs Ministry, to
enquire into siphoning of funds by the scam-ridden Satyam
Computer Services.

Serious Fraud Investigation Office (SFIO), which
submitted a detailed report on the Rs 10,000-crore Satyam
fraud to the government in April, will soon begin probe into
diversion of funds by the promoters of the company , sources
told a news agency.

"They (Ministry of Corporate Affairs) have asked SFIO to
look at another aspect of the case, that is siphoning of
funds...orders for which have been issued on Friday," sources

SFIO`s 14,000-page report, they added, have not been able
to track the chain of events leading to diversion of funds in
the Satyam case.

The investigation body, however, did discover violation
of various provisions of the Companies Act and Indian Penal
Code and recommended prosecution of promoters of Satyam,
including its founder B Ramalinga Raju.

Following admission of accounting fraud by Raju, the
Corporate Affairs Ministry had ordered SFIO to probe into the

The IT company, however, was later acquired by the Tech
Mahindra, a firm belonging to the Mahindra Group through an
open tender process.

Bureau Report

First Published: Monday, August 17, 2009 - 23:14

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