RAJU SHELL COS WANT SATYAM MONEY BACK

Demand Repayment Of Rs 1,230 Crore

Sreekala G & Hema Ramakrishnan HYDERABAD

A CLUTCH of front companies promoted by Satyam Computer Services founder B Ramalinga Raju and family has demanded repayment of Rs 1,230 crore that it lent to the troubled software company, giving another twist to the ongoing saga and puzzling both investigators and the new board.
    A senior police official, who is a part of the Andhra Pradesh investigation team, said the 36-odd shell companies made the demand through a letter immediately after Mr Raju confessed to fudging the company's books for many years on January 7.
    "The matter is now pending before the newly-inducted board," he added. It is not known when the firms — Pavitravati Greenfields, Vishnupadi Greenfields, Vindhya Greenfields and Narmada Greenfields —lent the money to Satyam.
    According to Mr Raju's letter to the company's board on January 7, the company's liabilities were understated. The police have also claimed that Mr Raju had told them that he had brought in about Rs 1,230 crore into Satyam by pledging shares of his family members with nonbanking financial service companies.
    Ramalinga Raju's wife Nandini, his younger brother B Suryanarayana Raju, his sister-in-law Jhansi Rani, his youngest sibling Rama Raju and the latter's wife Radha are among the directors in many or all of these firms.
    Indeed, the development has intrigued the Hyderabad police. They are wondering why the family of the accused, some of whom are also being probed for their role in cooking the Satyam books, are making such a demand. The letter's timing is also raising doubts. It was written barely a day after January 7, raising the possibility of an attempt by some members of the extended Raju family to plead ignorance about the whole affair.
    The Satyam board is equally perplexed. A senior official said there is nothing much to say about the demand. "We are currently in the process of verifying the outstanding liabilities of Satyam. Our plan is to make arrangements to repay only genuine loans given to the firm," a Satyam official involved in the verification process said. He added that only genuine liabilities will be honoured. Police officials say that there is another reason to suspect the intentions behind the demand.
    "These front firms were involved in land dealings and some of them have raised loans aggregating to Rs 1,500 crore to fund property purchases. The money has been raised from financial institutions. The Rajus floated several firms mainly to grab farm land, as the current land ceiling regulation allows an individual to hold only up to 55 acres of agricultural land," said the official.
PAYBACK SCHEME
Realty Magnet
Raju & family float over 320 front companies, mainly to deal in real estate Shell cos borrowed 1,500 crore from financial institutions to fund land deals The companies are owned or controlled by Ramalinga Raju and family
Loansome Deals
Of the 320 front companies, 36 claim they lent Rs 1,230 crore to Satyam
Raju reported these loans as an "understated liability" of the company
Suspect Claims
Investigators puzzled over the claims made by Raju's family after the confession
They are wondering why the family of the accused, some of whom are also being investigated, are making such a demand
They think it's an attempt by some members of the extended Raju family to plead ignorance about the whole affair
Board Stance
Satyam board ascertaining the veracity of these claims Board says only genuine liabilities will be honoured