New Delhi: Police detained the chief financial officer of embattled outsourcing giant Satyam Computers on Saturday, the third executive to enter police custody in the wake of a massive fraud scandal.
Vadlamani Srinivas was detained Saturday night for questioning , said S.S. Yadav, the Andhra Pradesh police chief in Hyderabad, where Satyam is headquartered. He could be arrested later in the night, the police official said.
Satyam’s founder and former chairman, B. Ramalinga Raju, was arrested Friday, two days after he confessed to filling the company’s balance sheets with “fictitious” assets and “nonexistent” cash in a letter to the company’s board.
His brother, former managing director B. Rama Raju, was also arrested Friday. They were both charged Saturday with criminal conspiracy, forgery, criminal breach of trust and falsifying documents, said senior police official S.K. Kumudi. They face up to life in prison, he said.
The Ministry of Corporate Affairs dissolved Satyam’s board, including the company’s interim head, late Friday night.
Minister for Corporate Affairs Prem Chand Gupta condemned “the greed and misdeeds of a few persons who were at the helm of affairs of the company”.
“The current board of Satyam has failed to do what they were supposed to do,” he said in an official statement.
The statement said the central government will appoint 10 people “to function as directors of the company,” but no one had been named to the seats.
Satyam Computer Services Ltd. employs 53,000 people _ among the 2 million Indians working in the country’s booming high-tech industry, which last year brought in an estimated $40 billion. Satyam’s clients include a slew of Fortune 500 companies including Nestle, General Electric and Ford Motors.