Ramalinga Raju confessed that he diverted funds of Satyam Computer Services to the two real estate firms that is promoted by his family. Raju is the founder and former chairman of this IT company. According to the Andhra Pradesh police, Raju has also admitted of using the money of the company for buying prime land in and around Hyderabad.
CID sources added that Raju told the funds were diverted in previous 4 to 5 years. Raju also admitted while resigning as company chairman to Rs 70 billion accounting fraud.
CID has also taken his brother and former managing director B. Rama Raju and former chief financial officer in custody for 4 days after the court has granted permission.
Raju beside diverting the funds of Satyam also misled company auditors by submitting fake bank documents. He also swindled money through 6000 fake salary accounts. He created these accounts in 4 banks so that he can divert the funds from fixed deposits.
After the confession of Raju, the company claims that 53000 employees came under scrutiny. The newly appointed board by the government is also trying to ascertain the exact figures.
