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Court extends Raju’s custody; CID says staff numbers faked

Court extends Raju’s custody; CID says staff numbers faked
PTI
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First Published: Thu, Jan 22 2009. 05 16 PM IST
Updated: Thu, Jan 22 2009. 05 16 PM IST
Hyderabad: A magistrate court on Thursday extended the police custody of Satyam’s tainted founder Ramalinga Raju and its former CFO Vadlamani Srinivas by a day, to allow the investigators to confront them with documents seized during raids.
The Andhra Pradesh police’s Criminal Investigation Department submitted that Raju had faked employee numbers — inflating them by nearly 12,000 — and drew benefits to the tune of Rs20 crore a month.
In the petition seeking extension of Raju’s and Srinivas’s custody, the CID submitted that in addition to fudging the company’s books of accounts, the IT company’s founder appears to have cooked employee numbers too.
The public prosecutor claimed that Raju told CID officials that there were only 40,000 employees working with the firm, whereas the documents were showing over 52,000 employees.
On the basis of the inflated employee numbers, he was drawing Rs20 crore monthly from the bank towards staff cost, the prosecution submitted.
The 6th additional chief metropolitan magistrate granted extension of police custody of the two till 1600 hrs on Friday.
The court had earlier remanded Raju, his brother Rama Raju and Srinivas to police custody for four days from 18 January. Rama Raju has been sent to judicial custody till Friday.
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First Published: Thu, Jan 22 2009. 05 16 PM IST
More Topics: Raju | Custody | Srinivas | Satyam | CID |