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Satyam issue: SFIO fails to track exact trail of funds

Satyam issue: SFIO fails to track exact trail of funds
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First Published: Sun, Apr 19 2009. 09 37 PM IST
Updated: Sun, Apr 19 2009. 09 37 PM IST
New Delhi: The Serious Fraud Investigations Office (SFIO) submitted its final report on the scam at Satyam Computer Services Ltd to the ministry of corporate affairs (MCA) last week.
According to people familiar with the development, the report could not arrive at any conclusion on the allegation that the family of founder B. Ramalinga Raju had siphoned off funds from the Hyderabad-based company. MCA is now mulling options to take investigations forward through “appropriate agencies”.
Satyam’s balance sheet did reflect transactions that indicated funds may have been siphoned off. But the SFIO has not been able to track the exact trail of funds because of its “limited jurisdiction” in taking the case forward, the people said.
Tech Mahindra Ltd, a unit of the Mahindra group, last week won bidding for a 31% stake in Satyam for Rs1,756 crore. The firm has to make an open offer to minority shareholders for an additional 20% stake in Satyam.
Tech Mahindra beat US billionaire investor Wilbur Ross and Larsen and Toubro Ltd, India’s biggest engineering company, to Satyam.
The government took control of Satyam in January after its founder admitted he’d inflated assets by at least Rs7,136 crore over several years. Raju, his brother and seven other people, including two Price Waterhouse auditors, are now in jail on charges of conspiracy, cheating, forgery and falsification of accounts.
cnbctv18@livemint.com
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First Published: Sun, Apr 19 2009. 09 37 PM IST