SFIO probe not to overlap CBI’s

SFIO probe not to overlap CBI’s
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First Published: Thu, May 14 2009. 10 54 PM IST

Under scanner: Satyam’s office in Hyderabad. Bharath Sai / Mint
Under scanner: Satyam’s office in Hyderabad. Bharath Sai / Mint
Updated: Thu, May 14 2009. 10 54 PM IST
New Delhi: More than a month after the Serious Frauds Investigation Office submitted a voluminous report on the scam at Satyam Computer Services Ltd, the ministry of corporate affairs (MCA) is in the process of fine-tuning the prosecution strategy.
Under scanner: Satyam’s office in Hyderabad. Bharath Sai / Mint
A senior government official, who who did not want to be named, said detailed consultations are under way between the MCA and the ministry of law and justice. “The idea is to ensure that the prosecution based on the SFIO findings does not overlap in any manner with the ongoing prosecution by the Central Bureau of Investigation (CBI). We need a coordinated approach,” the official said.
The official added that the legal strategy will be decided over the next few days, following which prosecutions could begin immediately.
Satyam founder B. Ramalinga Raju on 7 January confessed to having misstated accounts to the tune of Rs7,136 crore and has been arrested. The company was last month purchased by Tech Mahindra Ltd, a part of the Mahindra Group, in a bidding contest.
The need to consult the law ministry arose because of the CBI chargesheet, which was filed on 7 April at the designated court for CBI cases in Hyderabad, where Satyam is based.
The CBI chargesheet is primarily based on violations of the Criminal Procedure Code, while the SFIO will launch a prosecution based on violations of the Companies Act.
The official added that the SFIO has not closed its investigations in the Satyam case.
It is now probing suspected siphoning off of funds from the company “and will provide additional information as and when it unravels the money trail”, the official said.
cnbctv18@livemint.com
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First Published: Thu, May 14 2009. 10 54 PM IST
More Topics: CNBC TV18 | Satyam | SFIO | CBI | Fraud |