No problem in probe by any agency: Reddy

Andhra Pradesh said on Sunday that it had no problem in a probe by any agency to unravel the Satyam fraud, after the state police made headway and arrested company founder Ramalinga Raju and his brother Rama Raju.

The Rajus are in judicial custody till January 23 and the state's Criminal Investigation Department has already arrested Satyam's CFO Vadlamani Srinivas and is believed to be quizzing auditor Price Waterhouse's representative Gopal Krishnan.

"Nothing prevents CBI from inquiring into this... nothing on earth prevents any other law enforcement agency from inquiring into them," Andhra Pradesh chief minister YS Rajasekhara Reddy said on Sunday.

Separate investigation teams from market regulator SEBI and the Serious Fraud Investigation Office of the Corporate Affairs Ministry had reached Hyderabad as early as Thursday, but could not access the Rajus, who gave themselves up to the state police on Friday and were remanded to judicial custody on Saturday.

The police had asked SEBI and SFIO to get the Economic Offences Court's permission to interrogate Raju. Meanwhile, the CB-CID began searching the Satyam office premises on Sunday.

Reddy said the CB-CID has already booked a case of fraud after Raju on Wednesday disclosed fudging accounts to the tune of Rs 7,800 crore over several years, but the Corporate Affairs Ministry and SEBI were looking into all other aspects of commissions and omissions that fall under their purview.

"We are trying to take all steps in coordination so that the interest of the 53,000 employees, shareholders and investors are safeguarded," the chief minister said. 

Rebutting allegations of delay in taking action in the case, Reddy said the day the scam broke, he was in Delhi and immediately asked the chief secretary and the CB-CID to look into the issue.

The CB-CID has arrested CFO Vadlamani, who is likely to be produced before a magistrate. Auditor PwC's representative Gopal Krishnan is also in custody for questioning, according to reliable sources.

However, inspector general CID VS Kaumdi denied the development.

On January 8 evening in Chennai, Reddy said he had heard the Corporate Affairs minister Prem Chand Gupta announcing that Satyam Board had been disbanded. "Then I asked our people to look into booking a case of fraud.

On the raids at Satyam premises, a CB-CID official said: "As part of investigations, the raid have started today morning and are continuing."

"Nothing prevents any investigating agency or any law enforcement agency from acting without any inhibition or problems," Reddy said.

The chief minister also said he had asked the chief secretary to look into the probability of all aspects of Maytas firms, where they are jointly or severally responsible and involved in projects with the state government and ensure whether it was in the interest of the state to go ahead.

"Ultimately, the interest of the government and work will have to be carried out in a transparent manner and how to implement it. The chief secretary has been asked to look into it," he said.

Reddy said any decision would be taken only after the chief secretary gave the report.