Satyam fudged FDs, has 40,000 employees

The public prosecutor on Thursday said that Satyam fudged FDs and diverted Rs 20 cr every month on fictitious employee names. The

company has 40,000 employees and not 53,000 as mentioned earlier.

He said that hundreds of acres of land were bought on benami accounts. HDFC Bank accounts were also found forged.

It was reported in Mumbai Mirror today that Satyam’s ex-Chief Financial Officer Srinivas Vadlamani has given a new turn to ongoing investigations by confessing to having created around 10,000 artificial jobs in the company.

He told CID officials interrogating him that this helped in drawing around Rs 20 crore per month from the related but fictitious salary accounts. Though Srinivas claimed that the fake jobs were created from 2004 onwards, CID officials are looking into Satyam’s history right till 2001.

A source close to the investigations said that even the firm’s founder B Ramalinga Raju, while being interrogated at Masab Tank, confessed to having not only diverted Satyam money to Maytas Infra and Maytas Properties, but also invested in lands in Hyderabad and Visakhapatnam.

In fact, the Company Law Board directed Raju and four others on Wednesday not to sell shares and other properties without its permission, apparently worried that they might liquidate assets.

To prevent the erstwhile top brass in Satyam from making gains by siphoning of public funds, the Company Law Board (CLB) on Wednesday restrained Satyam’s founder B. Ramalinga Raju, his brother B. Rama Raju, former CEO Rammohan Rao Mynampati, CFO Srinivas Vadlamani and company secretary G J Jayaraman from selling or mortgaging their assets without the court’s permission.

The court also ordered them to furnish details about their bank accounts and movable and immovable property in India and abroad, by February 20.

Liquid cash at Satyam is close to nil and the board is in a desperate need to raise funds to keep the company operations active.

The company management is seeking to raise money from banks by pledging its receivables, which have over Rs. 1700 crore of worth.

Kiran Karnik, one of Satyam’s new government-appointed board members, said Satyam had received notice from two large customers that they were terminating their contracts.

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