SC cancels bail to Raju in Sataym case

SC cancels bail to Raju in Sataym case

New Delhi: The Supreme Court on Tuesday cancelled the bails granted to Satyam Computer founder B Ramalinga Raju, his brother B Rama Raju and four others by the Andhra Pradesh high court in the Rs14,000-crore accounting fraud.

Hearing the CBI plea, a Supreme Court bench comprising Justices Dalveer Bhandari and Deepak Verma today cancelled the bails and asked all six persons to surrender by 8 November.

Observing that the case involved the biggest scam in the history of India, which had affected large number of shareholders, banks and financial institutions, the bench said that the HC order of grating bail cannot be sustained.

The SC also directed the special court in Hyderabad, which is conducting the trial in the Satyam case, to conclude its proceedings by July 2011.

Earlier this month, the bench had issued a notice to Raju, directing him to file his reply on CBI’s plea.

In its petition for cancellation of the bail granted to Raju by the Andhra Pradesh HC, CBI had said that Satyam’s founder and former chief “misused" the bail by meeting one of the witnesses in the case and tried to “influence" him.

CBI had filed the chargsheet running into over 10,000 pages, naming more than 250 witnesses. Such a huge volume was criticised by the court in the last hearing on 19 October.

Besides the two Raju brothers, the HC had granted bail to the four employees of the IT firm, namely Srinivas, Ramakrishna, Venkatapathi and Srisailam.

CBI had approached the apex court on 13 September and said that Raju might influence the witnesses majority of whom were his former employees.

The HC on 18 August had allowed Raju’s bail on the ground that all other accused in the case, including his brother Rama Raju, former Satyam CFO V Srinivas and three other former IT company employees G Ramakrishna, Venkatapathi Raju and Srisailam were granted bail by it.