Govt asks SFIO to start prosecution proceedings in Satyam case
The Government today asked investigating agency SFIO to initiate prosecution proceedings against persons involved in Satyam accounting fraud and partners of Price Waterhouse, the auditors of the IT company.
New Delhi: The Government today asked
investigating agency SFIO to initiate prosecution proceedings
against persons involved in Satyam accounting fraud and
partners of Price Waterhouse, the auditors of the IT company.
"SFIO has been asked to begin prosecution for
violation of company law in the Satyam case...it will also be
against Price Waterhouse partners", a senior official of
Corporate Affairs Ministry told agency.
Serious Fraud Investigation Office (SFIO), an arm of the
Corporate Affairs Ministry, had investigated the multi-crore
rupee Satyam accounting fraud and submitted its reports to the
government detailing violations of company law by founder
chairman B Ramalinga Raju and others.
The investigating agency will initiate proceedings on
about 30 charges mostly under the Companies Act 1956, while
the Central Bureau of Investigation (CBI) will be acting on
five or six charges involving criminal offences under the
The SFIO charges deal with falsification of balance
sheet and profit and loss accounts, rigging stock prices,
filing of false income tax returns etc.
The Corporate Affairs Ministry asked the SFIO to initiate
prosecution in the Satyam case after obtaining opinion of the
Solicitor General of India.
Besides Ramalinga Raju, prosecution would also be carried
out against Raju`s brother Rama Raju, Satyam`s former CFO
Vadlamani Srinivas, and Price Waterhouse auditors S
Gopalakrishnan and Srinivas Talluri.
After the confessions made by Raju to the multi-crore
accounting fraud in January, the Corporate Affairs Minister
had ordered investigation into the scandal by the SFIO.
The investigating agency submitted a 14,000-page
preliminary report to the government in April.
The SFIO report had highlighted various acts of
commission and omission by Satyam founder Raju and company`s
auditor Price Waterhouse.
Raju and PW auditors had been arrested in the case.
Besides SFIO, the Satyam fraud case has also been
investigated by the CBI and other agencies of the central and
state governments, including SEBI and Institute of Chartered
Accountants of India (ICAI).
Satyam, under the directions of the Company Law Board,
was sold to Tech Mahindra and has been rechristened as