The Hindu : Front Page : Ramalinga Raju, brother asked to hand over properties worth Rs.170 cr.

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Thursday, Jan 21, 2010
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Ramalinga Raju, brother asked to hand over properties worth Rs.170 cr.

N. Rahul

‘Proceeds of fraud channelised in a planned manner into different investments’

Properties were benami holdings
Directors did not have financial capabilities

— PHOTOS: P.V.SIVAKUMAR

BIG FISH: B. Rama Raju, brother of Ramalinga Raju, waits outside the Nampally Criminal Courts Complex on Wednesday.

HYDERABAD: Confirming that the former chairman of Satyam Computer Services Limited (now known as Mahindra Satyam), B. Ramalinga Raju, and his brother, Rama Raju, had acquired huge properties by criminal methods, an adjudicating authority in New Delhi has directed them to immediately give up possession of 287 properties worth Rs.170 crore and 34 lakh shares of the company with market value of Rs.36 crore.

In its 100-page order, a copy of which was received by enforcement officials here on Wednesday, the two-member Bench representing the authority under the Prevention of Money Laundering Act concluded that all movable and immovable properties attached by the Directorate of Enforcement were involved in money laundering and represented proceeds from crimes committed by the brothers.

Should be handed over

As such, the properties shall be handed over to the Directorate of Enforcement.

The Directorate of Enforcement had, in the first instalment, attached on August 18 last about 10,000 acres of land split into 287 properties and 34 lakh shares standing to the credit of SRSR Holdings Private Limited, a group company of Satyam Computers which was alleged to have conducted complex financial transactions with the proceeds of the crime.

The properties were benami holdings in the names of 132 individuals other than the brothers and companies.

Hearing

The adjudicating authority has heard the case since November and is scheduled to take up next month the hearing in the second instalment of 25 properties worth Rs.20 crore which were attached on November 11.

The Directorate of Enforcement expects to attach properties of Satyam Computers in some more instalments in the coming months.

The Bench observed that the proceeds of the Satyam fraud were channelised in a planned manner into different investments by resorting to money laundering.

Financial capabilities

It also said the directors of Satyam group of companies, in whose names the properties were purchased, did not have financial capabilities. The money was arranged by the Raju brothers through inter-connected transactions with the help of returns from the crime.

The Directorate of Enforcement had informed the authority that the properties were partly purchased against loans raised by SRSR Holdings on the basis of Satyam shares.

Money transfer

The fraudulent money was also transferred to SRSR, which diverted it to 327 group companies for acquiring assets.

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