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Thursday, 22 January 2009

Satyam land grab scandal

Posted on 14:00 by Unknown
How many people feel that Hyderabad real estate is headed for the steepest drop among IT cities ??
Prosecution opens Raju can of worms
G.S. RADHAKRISHNA

Hyderabad, Jan. 22: Government agencies today portrayed a hydra-headed Satyam scandal involving bogus employees, systematic skimming of money, countless land deals as well as a cover-up and laid the blame at former chairman Ramalinga Raju’s door.

The disclosures, made in court and outside, were rebutted by Ramalinga’s lawyer who termed them “concocted”.

Public prosecutor Ajay Kumar opened the floodgates in a metropolitan court, changing the complexion of the revelations that have so far been confined to “leaks” by unnamed sources.

“Investigations reveal that he (Raju) had created false employee accounts for over 10,000 bogus employees and siphoned off almost Rs 20 crore per month in their name,” Ajay Kumar told the court today. The prosecutor also claimed that Raju had “stashed almost Rs 7,000 crore in the accounts of his mother and brothers”.

Later, officers of the Andhra criminal investigation department (CID), which is handling the case, said the erstwhile Satyam promoters had been crediting the money each month for four years to as many as 13,000 non-existent employees.

The officers gave the break-up as 10,000 bogus employees and 3,000 retired ones. “The then Satyam management has given hikes, promotions, bonus and LTA to these invisible employees all these years,” a sleuth said. If true, the amount on this count alone adds up to Rs 960 crore.

In the evening, the CID went on record to say it had found documents suggesting 400 benami companies were used to acquire vast tracts of land.

“The documents reveal a mind-boggling land acquisition spree by the Satyam promoters across the country,” said V.S.K. Kaumudi, the inspector-general heading the CID investigation.

The payments for the land deals were made from domestic and overseas accounts of the promoters, the CID said.

The benami companies have been floated by SRSR Advisory Services, a company through which the promoters used to control Satyam, the CID said.

Ramalinga’s younger brother Suryanarayana, apparently a key figure managing the SRSR cash, has not been seen in public since Tuesday night. The police have impounded the passports and frozen the bank accounts of 18 relatives of Ramalinga.

Late tonight, the CID raided six apartments across Hyderabad allegedly used by the promoters to “dump” papers and documents. The sleuths are examining their authenticity.

Prosecutor Ajay Kumar told the court where Ramalinga was produced this afternoon that the promoters had generated false documents for around 2,000 acres in and around Hyderabad so that Maytas Properties, the family’s realty venture, could raise bank loans. Nearly Rs 3,300 crore in loans were allegedly raised using the land documents.

The prosecutor claimed that fake fixed deposit certificates worth Rs 4,000 crore had been found. Some had been mortgaged to raise loans.

Ramalinga’s lawyer, Bharat Kumar, said the CID had never asked his client anything about the alleged non-existent staff, bogus land papers and fake FD receipts.

Bharat Kumar pointed out that the public prosecutor was making verbal allegations without mentioning them in the petitions filed this morning. Government sources later said the chargesheet would mention the specific points.
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