INDIAN police have arrested Satyam Computer Services founder B. Ramalinga Raju and his brother while the Government removed the company’s directors and regulators took possession of its books, following revelations accounts were falsified over several years.
“Ramalinga Raju has been arrested for having violated several sections of the Indian Penal Code,” S.S.P. Yadav, director general of police of Andhra Pradesh, told Dow Jones Newswires.
The state police chief said that Mr Raju’s brother, B. Rama Raju, had also been arrested, while chief financial officer Srinivas Vadlamani was likely to be arrested later today or tomorrow.
Both Ramalinga Raju and Rama Raju have been arrested under various sections of the Indian Penal Code related to criminal conspiracy, cheating, forgery, and falsification of records.
The alleged $1.4 billion accounting scandal at Satyam has been called India’s Enron.
Source: The Australian, January 10
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