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Satyam: YSR ready for CBI probe

Special Correspondent

Coordinating mechanism involving SEBI, SFIO and CID suggested

Chief Minister explains about progress of probe in a letter to Prime Minister

Rival parties exploiting the issue, Rajasekhara Reddy tells Manmohan Singh

HYDERABAD: Chief Minister Y. S. Rajasekhara Reddy has requested the Ministries of Finance and Company Affairs to suggest a coordinating mechanism involving the Central investigation agencies like Securities Exchange Board of India (SEBI) and Serious Fraud Investigation Office (SFIO) and the State’s Crime Investigation Department inquiring into the Satyam Computers’ fraud.

Dr. Reddy said he was making this request in light of reports in the media, supposedly made by the Central agencies, that the required cooperation with them was wanting.

Apart from the coordinating mechanism, his government would welcome taking over of the case by the Central Bureau of Investigation, if deemed appropriate, he said.

In a letter addressed to Prime Minister Manmohan Singh on Wednesday, Dr. Reddy said the scrutiny of Satyam by investigating agencies following the confession of its erstwhile chairman B. Ramalinga Raju had engaged the attention of the information technology sector in India and abroad and made an impact on the IT industry’s image.

General elections

The issue had become all the more sensational coming as it did just ahead of the general elections.

The political parties were exploiting the issue and attacking the State government for diluting the gravity of the case.

Dr. Reddy tried to impress upon the Prime Minister that the CID (the highest agency within the purview of the State government) “waited till a complaint was received on January 9” in the absence of “any proper complaint” to set criminal law in motion. It was in regular touch with the SEBI, Enforcement Directorate and the Registrar of Companies and held several rounds of discussions jointly.

The Director, Investigation of Income Tax department, was informed about the searches from time to time and the IT department was already associated in the investigation.

The probe so far revealed embellishment of bank accounts by the company for more than seven years to impress the clients within the country and overseas.

The inflation of current account balance was testified by bank officials concerned and the company also raised money from NBFCs by pledging shares.

Construction projects

The Chief Minister also referred to the ‘media allegations’ about Maytas. He said Maytas was a group of infrastructure companies which independently participated in different tenders as part of a consortium with other companies and secured contracts for certain construction projects.

The scope of the present investigation included a probe into any connecting link. He said though it was a complicated investigation, he was confident that its results would meet the requirement of justice and the guilty brought to book.

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