The Satyam scandal continues as three executives' bail pleas were dismissed in a Hyderabad city court, and more hearings are yet to come
A city court on Wednesday dismissed the bail applications of Satyam's disgraced founder Ramalinga Raju, former managing director Rama Raju and former CFO Vadlamani Srinivas.
The 6th additional chief metropolitan magistrate also posted for tomorrow, hearing on separate petitions relating to the bail and police custody of SRSR Holding general manager Gopala Krishna Raju.
SRSR Holding is promoted by Ramalinga Raju's family and Raju held stake in Satyam through this company.
Ramalinga Raju, Rama Raju and Srinivas are in judicial custody till January 31.
Mr. Raju, Mr. Rama Raju and Mr. Srinivas were arrested earlier this month after Raju confessed to fudging the company's books, thereby perpetrating a Rs 7,000-crore fraud.
Gopalakrishna Raju was arrested following a raid by the Criminal Investigation Department (CID) at SRSR's office at Jubilee Hills on January 21. The police had seized several documents related to land deals and property transactions from the company's premises. B Suryanarayana Raju, the low-profile sibling of Ramalinga Raju, is the managing director of SRSR. The state police, however, could not nab him.
Mr. Ramalinga Raju's counsel, D Prakash Reddy, argued there is no provision in the law under which the accused cannot be granted a bail since the sections under which they were booked do not call for a continued custody.
"The prosecution has not proved to the court that the offences allegedly committed by the accused either call for a death punishment or life imprisonment. Unless the offences are of this magnitude, there is no reason for the court to reject a bail. According to the section slapped by the investigators on the accused, they call for a maximum punishment of seven years. So, it is a case fit for bail," he said.