TNN

Hyderabad, Feb 10: Giving in to opposition criticism that undue favours were being extended to the promoter of Satyam computers, chief minister Y S Rajasekhara Reddy late on Monday evening dashed off a letter to Prime Minister Manmohan Singh seeking a CBI probe into the fraud committed by the company.

Reddy in his letter said that Satyam attracted global attention because of fudged accounts, financial imprudence and the accounting scam it had created. He said the incident had come to his notice on January 7 and immediately, the government had ordered CB-CID investigation. Company chairman Ramalinga Raju, his brother Rama Raju and the chief financial officer were arrested.

He said the investigation was still on and had revealed embellishment of bank accounts by the company for last many years.

The inflation of current account balance is testified by the bank officials concerned. In addition, the company has raised money from NBFCs by pledging shares. More than 300 companies were reportedly raised by Ramalinga Raju and his close relatives as directors and promoters which facilitated insider trading of shares.

Reddy said the CB-CID has been in regular touch with the other investigating agencies but there were several issues which need to be looked into deeply by central government organisations like Sebi, Income Tax, Enforcement Directorate, Registrar of Companies, ministry of company affairs and Serious Fraud Investigation Office. Besides, irregularities have been reported in its overseas operations also, he added.

In view of this, the CM said that it would be appropriate if CBI takes over the investigation into Satyam scam so that coordination with various investigation agencies, including Satyam’s overseas operations can be better achieved.