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After SC cancels bail, Satyam's R Raju surrenders
November, 11th 2010

Ramalinga Raju, the former chairman and founder of Satyam Computer , on Wednesday surrendered to a lower court in a case of accounting fraud that turned out to be the countrys biggest corporate scandal.

Raju turned himself in after his bail was cancelled by the Supreme Court , VV Lakshmi Narayana, a Hyderabad-based senior official with the Central Bureau of Investigation (CBI) told Reuters. Raju, a management graduate from Ohio University who founded Satyam in 1987, shocked investors in January 2009 when he said the firms profits had been overstated for years and assets falsified in a fraud allegedly worth more than $1.5 billion.

He had been in police custody since the fraud was revealed until he was granted bail in August by a lower court in Hyderabad, where Satyam is based.

The CBI opposed the bail in the Supreme Court, which in October cancelled the bail granted to Raju and five other former employees and asked them to surrender. Raju sought an extension, but was denied.

The five former Satyam employees, including former managing director B Rama Raju and former finance head Vadlamani Srinivas,

also surrendered on Wednesday, Narayana said. Satyam was sold to Indian IT firm Tech Mahindra , majority-owned by automaker Mahindra & Mahindra and part-owned by British telecoms firm BT, in an auction in April last year. It was subsequently renamed Mahindra Satyam.

 
 
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