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Satyam: SFIO finds serious irregularities in land deals

Source: PTI
February 20, 2009 17:51 IST
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The investigation wing of the corporate affairs ministry, SFIO, has found serious irregularities in the land deals of entities linked with Satyam and companies promoted by the kin of the former Chairman of the IT company, B Ramalinga Raju.

"(The) probe so far shows how these companies had understated their land sale prices on the books. The Serious Fraud Investigation Office has details that companies sold land for 20-30 times higher than the prices shown . . .," a senior ministry official told PTI.

Following the disclosure of the Satyam scam, the corporate affairs ministry asked the SFIO to probe the books of accounts of 325 companies including those connected with Satyam and family members of B Ramalinga Raju.

For instance, the official said in the accounts of a company named Swarnamukhi Green Field Pvt Ltd, the cost of land has been shown as Rs 15,00,000 but it was sold for Rs 3.5 crore (Rs 35 million).

Similarly, for Himagiri Green Fields Pvt Ltd, land bought for just Rs 17,00,000 was sold at Rs 8 crore (Rs 80 million).

Another company Himagiri Biotech Green Field Ltd bought land for Rs 17,00,000 but sold it for Rs 8 crore to raise funds, which got diverted.

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