'Raju used benami bank accounts for transactions'
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'Raju used benami bank accounts for transactions'

By SiliconIndia   |   Wednesday, 28 January 2009, 12:06 Hrs   |    2 Comments
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New Delhi: Satyam scam is taking a new turn as a report put together by Hyderabad Income Tax (I-T) department in 2002 had found out that Ramalinga Raju and relatives had allegedly used an intricate web of companies and benami bank accounts to move money around and carry out trading in Satyam shares, reported The Economic Times.

In 2002, the Hyderabad office of the I-T department came across with a complex layer of transactions when they noticed many 'form 15h' filings, a category of income-tax returns used by senior citizens where exemption is sought for not deducting tax at source. These forms were reportedly, associated with accounts created without proper documentation. "Except for the name and signature, nothing was obtained in the name of documentation," said the report on which no action was taken.

As per the probe that followed, focusing on a transfer of Rs 19.5 crore by Satyam promoters to various family members, it was found out that Raju clan carried out transactions through a layer of intermediaries.

Raju used accounts in the name of relatives, including parents, in-laws, brothers and cousins to divert money and carry out insider trading.

The end-depositors, under whose names the accounts were opened and the transactions carried out, include Ramalinga Raju's father, the late B Satyanarayana Raju, his mother B Appalanarasamma, two brothers and their wives, sons and B Teja Raju and B Rama Raju and other relatives.

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Reader's comments(2)
1: Dear Padmanabhan:
Well Said. I could not have said it better. I live in the US and can empathize with your view. The US had one of the most corrupt administrations in history the last 8 yrs and nothing had been done to date to prosecute them. Instead, we have the minions of those same crooks as new cabinet ministers. But justice is justice everywhere and unless it is administered properly, I think we are looking at a dark and cloudy picture everywhere.
Posted by:RS1 - 29 Jan, 2009
2: Dear Sir

I think it is high time that we set up some people court to handle people like Raju. Even after having blessed with such an enormous amount of wealth, if somebody goes to steal money from his own company, he should be punished so aptly and that should become a writing on the wall for others who might start to bud such ambitions. I am a person who lost lakhs of rupees investing in start ups in the early 90s investing in companies like Khandalwal Electronics, Tirumala Fujitech and the like of it. I am sure promoters of those companies are all walking free and enjoying the money they collected from the less fortunate ones like me who trust others. It is a disgrace to our nation which had a civilisaiton on 7000 years and on, which always practiced the best of integrity and ethical values breeding people like Raju and a host of others like him. Our society should start to change - We should not respect people who has money, should respect those who made money in the most ethical way and also who conduct themselves with respect, empathy and truthfulness with their fellow countrymen. If that begins to happen, the thousands of politicians who steal our country's wealth and invest in overseas banks and properties will start to think twice before they steal again. Can we ever again get our highly revered virtousness get back into Indian society.. This is a major subject need thorough debate.. Jai Hind.
Posted by:Padmanabhan - 28 Jan, 2009
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