'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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