Lower court denies permission to drop complaint against Satyam

Hyderabad: A local court today dismissed a petition filed by Serious Fraud Investigation Office (SFIO), seeking to withdraw the complaint against Satyam Computer Services Limited (SCSL) from the list of accused, in the multi-crore accounting fraud case. The special court for Economic Offences passed the order. SFIO, the investigation arm of Union Corporate Affairs Ministry, had filed seven complaints against the company, its former chairman and Satyam’s founder B Ramalinga Raju and others for alleged violations under the Companies Act, in December 2009. [caption id=“attachment_97061” align=“alignleft” width=“380” caption=“Ramalinga Raju. Reuters.”]  [/caption] The agency last month filed the petition saying that “all the allegations are directed only against Raju and others, who have been in-charge of the management of the affairs of SCSL during the relevant period”. It cited a Union government letter of July 21, instructing it to withdraw the complaint against the company, as the allegations were specifically against Raju and others. SFIO counsel C Raghu stated in the court that SCSL had been taken over by another company through a due process under the Companies Act. However, the court in its ruling today said, “There is no rationality in the contention that the management of SCSL has been taken over by another company. “It is premature to observe and comment that Raju and others were alone responsible for managing the affairs of the company … It is very significant to note from the allegations of the SFIO that millions of shareholders who invested their hard-earned money in the shares of SCSL have lost their money…” The court also noted that “millions of investors who have lost their money were not only citizens of this country but also citizens of other countries. “In the absence of established involvement of public interest … it is not desirable to grant permission to SFIO to withdraw the case against SCSL.” The court was of the opinion that conceding to the request of SFIO may “end up to the advantage” of Raju and others. Raju and others accused are currently in judicial custody and lodged at Chanchulguda jail here in connection with the other Satyam fraud case, being probed by the CBI. The trial in the case is underway. PTI