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Rediff.com  » Business » Court rejects Raju brothers' bail plea

Court rejects Raju brothers' bail plea

Last updated on: May 13, 2009 18:48 IST

A local court in Hyderabad on Wednesday dismissed the bail pleas of Satyam Computer founder chairman B Ramalinga Raju, his brother and former MD Rama Raju and former CFO Vadlamani Srinivas.

The IV Additional Metropolitan Sessions Judge, T Eashwer Rao, rejected the bail applications of the trio on the ground that investigating agency CBI is still continuing its probe into the multi-crore fraud, in which investors not only in India but also in foreign countries are victims.

In the order, the judge said that balance sheet is the "backbone of a company and investors put their money in the firm believing the figures shown in the balance sheet for every year". But they (investors) had to sustain huge losses, he stated.

"In the present circumstances, when thousands of crores of rupees is involved in the case, the court is not satisfied to allow bail to the petitioners," the judge observed.

After attempts to secure bail from the designated CBI court - XIV Additional Chief Metropolitan Magistrate - failed, the defence lawyers had filed the bail application in the upper court of IV Additional Metropolitan Sessions Court.

This is the eighth time the bail applications of Raju brothers and Vadlamani is rejected since their arrest in January this year.

Meanwhile, the remand of Satyam founder B Ramalinga Raju and seven others was extended by 14 days by a local court in Hyderabad.      

The XIV Additional Chief Metropolitan Magistrate K Sudhakar extended the judicial remand of Raju brothers, Vadlamani Srinivas, two former auditors of Price Waterhouse - S Gopalakrishna and Talluri Srinivas - and three employees of Satyam Computer till May 27.      

All the eight accused, including Ramalinga Raju, were brought from Chanchalguda jail and produced before the magistrate to get the confirmation that they (accused) have received copies of chargesheet submitted by the investigating agency CBI in the multi-crore accounting fraud case.

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