The trial began on the cases filed by the Serious Fraud Investigation Office against the Satyam Computer Services founder chairman Ramalinga Raju and others.
After almost a year and half since the tainted founder of Satyam Computer Services B, Ramalinga Raju, confessed to having committed an accounting scam, the first ever trial proceedings have commenced in a local court on Tuesday.
The trial would now be conducted on all the accused, except the prime accused, Ramalinga Raju, since has been seeking exemption from appearing in the court on health grounds. Raju’s case has been split in the proceedings, which would be taken up separately.
A formal trial based on the charges filed by the Serious Frauds Investigation Office (SFIO), covering the violations committed by the company under the Companies Act has begun in the economic offences court in Hyderabad. After taking up the proceedings the court has posted the case for further hearing to July 2.
The former interim CEO of Satyam, Ram Mynampati, too has been separated from the case since Mynampati is believed to be in the US.
Subhash Sarsonia, assistant director, SFIO, was examined in the court kicking off the trial process and the SFIO counsel, C Raghu recorded Sarsonia’s statement. Several documents related to the accounts of Satyam between 2002 and 2008 were marked after recording the statement.
The SFIO has taken up the investigation under Section 211 of the Companies Act, which deals with the true and fair view of the state of affairs of a firm and the reflection of the same in the balance sheet.
The day one of the trial has dealt with the non-disclosure of the dividends paid to the foreign investors in foreign currency in the balance sheet.
“The company directors failed to show dividends paid to foreign investors in the balance sheet and other documents. All the directors, who were on the board that time, are responsible for the offence,” the SFIO counsel informed the court.
The CBI is still not able to get hold of Raju to bring him to court since he has been evading the court on health grounds again. The NIMS, where Raju is getting treated, too is coming in the line of fire now, since the hospital authorities have not filed a status report on Raju’s health as directed by the court. The CBI has been making efforts to at least get Raju through a video link and commence formal questioning in the court to record his statement. “Splitting of the case and separating those accused, who are not available from the case for the time being is an accepted practice, but the effort is to get Raju to accept the misdeeds. But, Raju is certainly exhausting all legal options and the court too has been patiently waiting in allowing him to make use of all his options,” a senior lawyer tracking the case said.
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