ED to file case against Satyam under Money Laundering Act

The Enforcement Directorate (ED) will register a case against Satyam Computer and its tainted founder-chairman B Ramalinga Raju for alleged money laundering.

The ED stepped into the multi-crore rupee fraud in Satyam after it claimed to have found prima facie evidence against Raju and others of violating the Prevention of Money Laundering Act.

The CBI will file the charge sheet against B Ramalinga Raju and others accused in the Satyam scam on April 9.

The ED sources alleged that Raju had diverted funds of Satyam into purchasing nearly 50 plots in Medchal and Qutbullahpur near Hyderabad.

The ED alleged that several hundred crore rupees had been diverted from the Satyam Computer accounts and had been invested in purchasing land and other infrastructure for Maytas.

The Directorate will go through deals of the IT company and ascertain their genuineness including payments made to acquire companies abroad.

The ED will also send a team to a few countries to investigate and get documents of bank accounts opened in violation of Indian laws.