10 February,2009 11:13 AM IST | | Agencies
Under fire from the opposition, Andhra Pradesh Chief Minister Y S Rajasekhara Reddy has written to Prime Minister Manmohan Singh seeking a Central Bureau of Investigation (CBI) probe in the Satyam Computer Services fraud.
In a letter sent late Monday, the chief minister said it would be appropriate if the CBI takes over the investigations so that coordination with various investigation agencies, including Satyam's overseas operations, can be better achieved.
"The AP police and the state CID will fully cooperate with the CBI once it takes over," he said.
The CM dashed off the letter hours after his government came under scathing attack from the opposition parties in the state assembly for not referring the case to the CBI despite the fact that the issue relates to several central agencies.
The investigation so far has revealed that Satyam had inflated its bank accounts for many years. The bank officials concerned have testified this inflation of the current account balance. In addition, the firm has raised money from non-banking financial companies by pledging shares.
More than 300 firms were reportedly floated by Satyam founder B Ramalinga Raju and his close relatives as directors and promoters and this facilitated insider trading of shares, said the CM.
