SC asks Raju to respond to CBI bail cancellation plea

The Supreme Court on Friday issued notice to B Ramalinga Raju on a plea by CBI against the bail granted to him by the Andhra Pradesh High Court in the Rs 14,000-crore Satyam accounting fraud.

Last Updated: Oct 01, 2010, 21:35 PM IST

New Delhi: The Supreme Court on Friday issued notice to B Ramalinga Raju on a plea by CBI against the bail granted to him by the Andhra Pradesh High Court in the Rs
14,000-crore Satyam accounting fraud.

A bench comprising Justices Dalveer Bhandari and Deepak Verma issued a notice to Raju, directing him to file his reply by October 19, the next date of hearing. The bench further said that it would hear the CBI plea on Raju and the other appeals challenging the bail granted to his brother Rama Raju, and employees of the IT firm Srinivas, Ramakrishna, Venkatapathi and Srisailam in connection with the fraud.
Solicitor General Gopal Subramanium, appearing for the CBI informed the bench that Raju was not well and undergoing treatment. The bench listed the matter on October 19. Earlier, on September 13, CBI had approached the apex court against the High Court decision to grant bail to Raju, contending that he may influence the witnesses majority of
whom were his former employees.

The High Court on August 18 had allowed Raju`s bail on the ground that all other accused in the case, including his brother Rama Raju, former Satyam CFO V Srinivas and three other former IT company employees G Ramakrishna, Venkatapathi Raju and Ch Srisailam were granted bail by it.

T Srinivas, Satyam`s auditor was granted bail by the Supreme Court. However, the CBI contended that there cannot be any parity between Raju and others as far as the seriousness of the case is concerned.
"... parity cannot be claimed by the respondent (Raju) that he is on a par with T Srinivas who was granted bail by the Supreme Court on February 4, 2010. Parity could be claimed
only if the roles of two persons (Raju and Srinivas) are similar or identical," the CBI said in its petition while appealing against the bail granted to Raju.

The probe agency submitted that the roles of Srinivas and Raju was quite different in the scam and the latter could not be granted bail on that criteria. Raju, who was arrested on January 9 last year and is currently undergoing treatment for liver infection in the state-run Nizam Institute of Medical Sciences, was ordered by the court to appear before the trial court after being discharged.
On August 30, CBI had moved the apex court seeking cancellation of the bail granted to Rama Raju, Srinivas, Ramakrishna, Venkatapathi and Srisailam accused in India`s
largest corporate fraud.

The court had issued notices asking them as to why their bails should not be cancelled and had directed them to file their replies. On January 7 last year, Raju in a letter to Satyam`s Board, admitted to fudging the accounts of the company over the past several years and creating fictitious assets where none existed. He was arrested two days later.

PTI