INDIAN police have arrested Satyam Computer Services founder B. Ramalinga Raju and his brother while the Government removed the company’s directors and regulators took possession of its books,
following revelations accounts were falsified over several years.
“Ramalinga Raju has been arrested for having violated several sections of the Indian Penal Code,” S.S.P. Yadav, director general of police of Andhra Pradesh, told Dow Jones Newswires.
The state police chief said that Mr Raju’s brother, B. Rama Raju, had also been arrested, while chief financial officer Srinivas Vadlamani was likely to be arrested later today or tomorrow.
The government said a new board would be appointed within 10 days.
“The government is considering appointment of suitable persons as directors of Satyam,” said Corporate Affairs Minister Prem Chand Gupta.
“We are determined to reach the truth but are equally concerned with the fate of employees and other stakeholders.”
Satyam’s shares fell to 11.50 rupees on Friday, their lowest level since March 1998.
Last year they hit a high of 544 rupees.
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