Raju interrogated by CBI for 2nd day, denies fund diversion

The CBI today continued with its interrogation of former Satyam Computer Chairman B Ramalinga Raju for the second consecutive day, even as the prime accused in the firm's Rs 14,000-crore scam maintained that there was no fund diversion to foreign countries.

The 55-year-old former top IT honcho, who appeared before the central agency yesterday, was grilled for the second day by a CBI team headed by DIG V V Lakshmi Narayana.

Six other Satyam scam accused were today questioned separately in connection with the alleged diversion of funds to foreign countries.

"He (Raju) has been telling there had been no fund diversion from Satyam Computer to other countries," Narayana told PTI after questioning Raju for close to four hours.

The investigating agency today also quizzed Satyam's former Managing Director B Rama Raju, ex-Chief Financial Officer Vadlamani Srinivas and former employees G Ramakrishna, Venkatpathy Raju, Ch Srisailam and Prabhakar Gupta.

The six were yesterday summoned to appear before the CBI.

"The questioning of Satyam accused (all the seven) will continue tomorrow also," the CBI official said.

With regard to the alleged fund diversion, the CBI had sent letters rogatory to six countries. The UK, USA, Singapore and Malaysia had sent part replies, while response from Belgium and British Virgin Islands was awaited.

A letter rogatory is a formal request from a court in India to a foreign court for judicial assistance.

The CBI is also trying to extract details regarding parking of funds in various countries since 1999, sources in the probe agency said.

The restated accounts presented by the the software major's new owners, Mahindra Satyam, indicated possible diversion of funds aggregating $41 million so far from the proceeds of the ADS (American Depository Shares) which were listed on the New York Stock Exchange in May 2001.

The forensic audit revealed the diversion of funds -- payments to banks worth $22 million, payments of $9 million to other entities as well as cash outflows to the tune of $10 million to unidentified beneficiaries.

Raju, who was last week discharged from the government -run NIMS Hospital, where he had been undergoing treatment for Hepatitis-C and heart problem for the past one year.

The Satyam founder was grilled yesterday also in connection with the multi-crore corporate scam, which came to light in January last year.