The Hindu : Front Page : SEBI likely to move court to quiz Raju

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Sunday, Jan 11, 2009
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SEBI likely to move court to quiz Raju

Special Correspondent

HYDERABAD: The Securities and Exchange Board of India (SEBI) is likely to approach the court on Monday seeking permission to examine Satyam chairman B. Ramalinga Raju over the alleged irregularities in his company.

The visiting delegation of the market regulator was disappointed over the unexpected arrest of Mr. Ramalinga Raju, who was to depose before them on Saturday afternoon.

The SEBI representatives made efforts to meet the disgraced Satyam chairman at the office of the Director General of Police office, where he was lodged since Friday night, but were reportedly not given adequate time to clarify their doubts.

With their attempts failing to yield results, the delegation is said to be redrawing strategies for cross examining Mr. Raju, who was remanded to judicial custody of 14 days till January 23.

Meanwhile, the Registrar of Companies (ROC) is learnt to be readying its case for interrogating Mr. Raju on the offences relating to submission of falsified statements and records. After examining volumes of data seized from the Satyam’s office about the parent company as well as its associates, the ROC, sources said, has come to a conclusion that there was a prima facie case against Mr. Raju under Section 628 of the Companies’ Act.

The section deals with statements made in any return, report, certificate, balance sheet, prospectus or other documents “which is false in any material particular, knowing it to be false” or “which omits any material fact knowing it to be material.” The section entails imprisonment of up to two years as well as fine.

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