Two days after the startling disclosure of a massive corporate fraud at Satyam Computer, the Hyderabad police are likely to swing into action on Friday and may arrest Ramalinga Raju, who has resigned from the position of chairman of the company.
Two days after the startling disclosure of a massive corporate fraud at Satyam Computer, the Hyderabad police are likely to swing into action on Friday and may arrest Ramalinga Raju, who has resigned from the position of chairman of the company.
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The action by the law enforcement authorities here is likely to be suo motu as it has not received any formal complaint so far, the police sources said.
The authorities have been witnessing significant pressure over the issue and this might be the reason for their expected move towards arresting Raju, the sources said.
On Wednesday, Ramalinga Raju admitted major financial irregularities to the tune of about Rs 7,800 crore at the company before resigning. Raju also said that he was ready to face the consequences and was subjecting himself to the law of the land.
The same day, the company's CEO and MD Rama Raju - brother of Ramalinga Raju - also resigned, while the next day its Chief Financial Officer quit the company.
With the company and its 53,000 employees left with an uncertain future, Andhra Pradesh Chief Minister YSR Reddy has written to Prime Minister Manmohan Singh urging the Centre to set up a committee to manage the company's affairs.
Yesterday, a team of market regulator SEBI's officials reached Hyderabad in connection with a probe announced a day before on the company and its dealings in stocks.
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