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Raju admits: Funds were diverted to real estate
Suresh Dharur
Tribune News Service

Hyderabad, January 21
Confirming the fears of a deeper fraud in Satyam Computers, its disgraced former chairman B Ramalinga Raju has confessed to diverting funds of the software giant to the two real estate companies owned by his family members.

During the interrogation by CID sleuths, Raju reportedly admitted that he had used the Satyam money to buy lands across Andhra Pradesh in the hope of making huge profits out of the real estate boom.

Raju, his brother and former managing director Rama Raju and former chief financial officer V Srinivas were grilled at the CID headquarters here for the fourth day today. Their CID custody ends tomorrow.

The fallen IT icon was understood to have told the interrogators that the diversion of money was being done for the past five years.

“Though it was difficult to extract information from him initially, he is now opening up a bit and providing us the crucial leads,” the police sources said.

Raju’s confession regarding funds diversion to Maytas Properties and Maytas Infra, the two firms owned by his sons, runs contrary to the claim he made in his January 7 resignation letter that he had inflated Satyam’s profits and fudged its accounts.

“His statement in the resignation letter could be a red herring. The fraud seems very deep and serious,” the police sources said.

The CID teams are looking into the details of the properties purchased by Maytas across Andhra Pradesh during the past five years. While resigning as company chairman, Raju had admitted to a Rs 7,000 crore accounting fraud involving cooking up the books over several years and showing non-existent cash and bank balances.

Raju also reportedly swindled money through 6,000 fake salary accounts for last few years to divert funds from fixed deposits.

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