Rajus using custody to avoid sleuths: Sebi

Market regulator Sebi feels jailed founder of Satyam Computer Services B Ramalinga Raju and his brother B Rama Raju are using judicial custody as a shield to avoid investigations by expert agencies.

Sebi, through its legal advisor SV Krishna Mohan, filed a petition in the Andhra Pradesh high court after the 6th additional metropolitan magistrate dismissed a petition by the regulator seeking permission to question the prime accused in the Satyam scam.

The regulator has excluded Satyam’s ex-CFO Srinivas Vadlamani as a respondent in its petition.

Sebi took strong objection to the dismissal of its petition by the lower court.

A Sebi team sent to Hyderabad to investigate the scam had summoned Ramalinga Raju on January 9.

However, he did not turn up and sought an extension on grounds of short notice and ill health. While he was to depose before the team on January 10, the Criminal Investigation Department arrested Ramalinga Raju and Rama Raju the same evening.

Terming this arrest as a “strange coincidence”, Sebi said with the absence of permission to question Raju, it was handicapped and could not investigate violations of securities laws by the Rajus as they are judicial custody and beyond the reach of the regulator.

The regulator sought the issuance of a writ of mandamus setting aside the lower court’s order.