SFIO files first Satyam case

The Serious Fraud Investigation Office (SFIO), the investigation arm of the Union corporate affairs ministry, has begun prosecution proceedings against the alleged perpetrators of the country's largest accounting fraud that took place in Satyam Computers last year.

Speaking to reporters on the sidelines of a Confederation of Indian Industry (CII) event here, the minister said the complaints have been filed before a special magistrate on economic offences in Hyderabad.

SFIO had given its report on the alleged Rs 10,000 crore accounting fraud to the ministry few months back. The government had asked the agency to initiate proceedings on over two dozen charges, relating to violations of the Companies Act of 1956.

The Central Bureau of Investigation (CBI), the other agency involved in the investigation of Satyam fraud, has already initiated prosecution proceedings.

Last week, CBI filed a second chargesheet accusing the Satyam founder of having siphoned off money to tax havens such as Mauritius. CBI alleged Raju had forged board resolutions and obtained unauthorised loans to the tune of Rs 1,220 crore (Rs 12.20 billion) for Satyam Computer.

The income tax department, enforcement directorate and Reserve Bank of India are also probing into the Satyam scam.