Satyam's Raju brothers surrender, arrested

HYDERABAD: Former Satyam chief Ramalinga Raju and his brother Rama Raju were arrested on Friday night, after they surrendered before the state
DGP. Raju brothers have been remanded to Andhra Pradesh CID's custody. ( Watch )

Ramalinga Raju surrendered before the DG of Andhra Pradesh Police S S P Yadav, a police official said.

Ramalinga Raju was arrested along with his brother and co-founder B Rama Raju on charges of criminal breach of trust, criminal conspiracy, cheating, falsification of records and forgery, Andhra DGP told Reuters.

Earlier in the day, Andhra Pradesh CID filed criminal case against former Satyam chief Ramalinga Raju.

Raju, whose whereabouts were a matter of speculation ever since he made the startling disclosure on Wednesday about the Rs 7,800 crore financial fraud, had been in hiding and was summoned to appear before the SEBI on Saturday, PTI reported.

Earlier on Friday evening, the government disbanded the current board of Satyam Computer and announced that it would nominate 10 directors on its board.

Corporate affairs minister Prem Chand Gupta said in New Delhi that the names of the new members would be announced soon for the board, which would meet in the next seven days.

The existing board of the company was scheduled to meet tomorrow to discuss the crisis that has engulfed the company and its over 50,000 employees.

Founder of Satyam B Ramalinga Raju, who has been summoned by market regulator SEBI tomorrow, had resigned as Chairman after disclosing staggering financial fraud. Five other directors had also resigned leaving the strength only at three.

Announcing the decision, corporate affairs minister Prem Chand Gupta said: "The current board ceases to exist and there would not be any meeting
tomorrow... the new board will meet in the next seven days."

The government's decisive action came nearly 60 hours after the startling disclosure by Raju, presumed to have strong political friends, that put the company and its over 50,000 employees fate in limbo.
Child Behaviour Problems -Understanding child behaviour problems and being parents, our liabilities.