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K.V. Kurmanath

Hyderabad, Jan. 22 The Registrar of Companies (RoC) team, investigating the Rs 7,136-crore Satyam Computer Services fraud, has stumbled upon vital documents that show flow of Rs 1,230 crore funds from little known agricultural companies into Satyam in the last two years.

The flow of funds, which began on November 17, 2006, continued till October 30, 2008.

The document, purportedly given to the members of the board along with the confessional statement that Mr B. Ramalinga Raju, the former Chairman, made on January 7, gave a detailed list of companies, which lent a total of Rs 1,425 crore. Of this, Satyam paid back Rs 194.60 crore in 11 instalments during October and November 2008.

The RoC officials secured this statement when they seized documents and books of Satyam and its associate companies after Mr Raju’s confessional statement.

It is this Rs 1,230 crore that Mr Raju listed as one of the four fraud items in the five-page confessional statement.

In the statement he mentioned that he understated liability of Rs 1,230 crore “on account of funds arranged by me.” For the second quarter ended September 30, 2008, the company only showed loans worth Rs 265 crore (including unsecured loans of Rs 234.80 crore).

He went on to explain that he had arranged Rs 1,230 crore, which was not reflected in the books, to keep the operations going by resorting to pledging all the promoters’ shares and raising funds from known sources by giving all kinds of assurances.

The investigating authorities are looking into the antecedents of these companies, which lent monies to Satyam. They are also looking into the aspects of shareholding pattern, where they had pledged their shares and when the lenders sold them in the market.

Some of these companies are promoted by Mr Raju’s immediate family and friends.

More Stories on : Software | Economic Offences | Trends | Satyam Computer Services Ltd

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