The disgraced former Chairman of Satyam Computer Services, Ramalinga Raju, has been sent to police custody till January 22. Also, any bail application will not be accepted till January 22.
Raju will now be shifted from Chanchalguda Jail to CB-CID custody where he will be interrogated.
Satyam’s tainted founder Ramalinga Raju on Friday asked the court for special treatment for him and his brother in jail, but the prosecution said those who made money at the cost of the poor don’t deserve such privileges.
The Rajus’ petition seeking special status in the Chanchalguda central prison, where they have been lodged till January 23, was filed before the sixth additional chief metropolitan magistrate’s court.
The status was sought under rule 730 of AP Prisons Rules. Raju’s lawyer Ravinder Reddy said they wanted a special cell for the Raju brothers as per the rules. The Raju brothers reportedly spent their time in jail since January 10 with dowry offenders.
After hearing the arguments of the public prosecutor as well as the defence lawyers, the magistrate posted the matter for further hearing
on January 19.
While Ramalinga Raju maintains that he did not have any ulterior motive in inflating the profits of Satyam, reliable sources reveal that Ramalinga Raju infact did pocket up money upto Rs. 1230 crores by selling Satyam shares which are now worth Rs. 66 crores only.
As the enormity of the fraud is surfacing, with the government, regulators and state authorities tightening their noose on Raju and the firm, information available with stock authorities reveal that all the promoter shares held through SRSR Holding were pledged for Rs 1,230 crore.
As per the statutory regulatory filings, the process of pledging started way back in September 2006, when promoter entity SRSR Holding held over 2.78 crore shares, comprising a 8.51 per cent of total equity.
As on September-end, 2006, these shares were worth Rs 2,275 crore at a price of Rs 818 a share. However, at the current price of Rs 23.85, the equity pledged with institutions is worth just about Rs 66 crore.
These shares were worth about Rs 500 crore a day before Raju made the disclosure about cooking of accounts and financial fraud, with scrip ruling low at Rs 179 a share on January 6. From the very next day, stock started plunging and touched an intra-day low of Rs 6.30 a share on Friday.
In his disclosure, Raju had said that “in the last two years, a net amount of Rs 1,230 crore was arranged to Satyam (not reflected in the books of Satyam) to keep the operations going by resorting to pledging all the promoters shares…”
Despite cheaating all the staakeholders in Satyam to the tune of 7800 crores, Ramalinga Raju still seems to gather support from Hyderabad localites. He is still their role model and wil continue to love him.
“He has let down everyone, but he is not a criminal,” that’s how the public here seem to be backing Satyam’s former chairman B Ramalinga Raju.
Telugu news channels are flooded with such SMSs backing Raju.
Raju received an overwhelming public support through an SMS survey conducted by different Telugu news channels yesterday which asked viewers if Raju is guilty and whether he should be arrested.
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