Saturday, January 10, 2009

Satyam's disgraced Raju brothers jailed till Jan 23

Satyam Computers disgraced founder B. Ramalinga Raju and his brother B. Rama Raju were Saturday sent to jail till Jan 23, a day after they were arrested for a Rs.70 billion (Rs.7,000 crore) financial fraud in the company.

The duo were produced before the VI Additional Chief Metropolitan Magistrate D. Ramakrishna around 5 p.m. Saturday.

"The magistrate has ordered judicial custody (for the Raju brothers) till Jan 23," lawyer for the brothers S. Bharat Kumar told reporters outside the magistrate's house in West Maredpally area. They were produced in the magistrate's residence as Saturday is a court holiday.

The brothers have been charged with cheating, criminal conspiracy, forging, criminal breach of trust, among other things.

They will be lodged in Chanchalguda jail in the old city of Hyderabad.

The magistrate rejected their lawyer's plea to permit Ramalinga Raju to get admitted to a hospital in view of his ill-health.

"Please permit my client to be admitted to a hospital," Bharat Kumar pleaded.

Declining this, the magistrate directed the jail authorities to monitor Raju's health constantly and provide all medical help.

The brothers will be lodged in separate cells in the Chanchalguda jail.

The 54-year-old Ramalinga Raju and his brother were arrested late Friday after they surrendered before Andhra Pradesh Director General of Police S.S.P. Yadav following registration of a criminal case against them.

The arrest came two days after Ramalinga Raju confessed Wednesday to the country's biggest financial fraud of Rs.70 billion and resigned as chairman of the company he started in 1987.

His brother Rama Raju, who was the managing director of the company, also resigned the same day.

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