Zeenews Bureau

Mumbai, Jan 08: Satyam’s ex-chairman B Ramalinga Raju is in Hyderabad and is ready to face the law of the land, announced his lawyer on Thursday even as market regulator SEBI sent a team to Hyderabad to initiate a probe into the Rs 8000 cr fraud that shook India Inc. Meanwhile, two lawsuits have already been filed against Satyam in the US accusing it of violating federal securities laws.

The committee, headed by SEBI'S Southern Region General Manager A Sunil Kumar, has reached Hyderabad and will start the investigation soon, a senior SEBI official said.

SEBI formed the special team following the confession by the IT-major's Chairman B Ramalinga Raju yesterday admitting gross manipulations in the company's balance sheets in the past several years.

Two US-based law firms – Izard Nobel LLP and Vianale & Vianale LLP - have filed class action lawsuits against Satyam Computer on behalf of shareholders of the software services firm's American Depository Receipts.

"A lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of those who purchased the ADRs of Satyam Computer between January 6, 2004 and January 6, 2009," Izard Nobel LLP said in a statement.

Another law firm Vianale & Vianale LLP has also announced that it has filed a class action lawsuit on behalf of purchasers of the American Depository Shares of Satyam Computer during the Class period January 6, 2004 through January 6, 2009.

According to legal experts, the maximum penalty for Raju in India could be ten years' of imprisonment and a fine of upto Rs 25 crore for forging accounts, breach of trust and misappropriating funds. In US, even a harder punishment is in store for Raju who could face imprisonment of upto 24 years and billion-dollar penalties.

"He (Raju) can be charged under various sections of the Indian Penal Code for falsification of accounts, cheating and breach of trust. These offences attract a maximum penalty of seven years," said a senior partner of law firm Titus and Company, Diljeet Titus.

Expressing a similar opinion, senior Supreme Court advocate C A Sundaram said, "If the admissions (made by Raju in his resignation letter) are true, it is a very serious matter. It would be violation of (the) SEBI (code), Company Law and the IPC".

Raju can be punished under Section 23 of the Securities Contract Regulation Act 1956 that imposes a penalty of imprisonment up to 10 years and fine up to Rs 25 crore.

Also, Section 477-A of the IPC (that prescribes seven years’ imprisonment) can be used.

Another senior advocate and corporate law practitioner U K Chaudhary said the Satyam chief could be imprisoned for seven years under various provisions of company law.

"Under Section 628 of the Companies Act, which deals with misrepresentation of accounts, he could be punished for a maximum of 2 years along with penalty. However, the punishment term could be extended to seven years for producing false affidavits and other documents," he said.

The Andhra Pradesh government has already ordered a CB-CID (Crime Branch-CID) inquiry into the matter.

The Union Government has meanwhile is all set to refer the case to Serious Fraud Investigation Office (SFIO) after verifying the facts and stern action under the law will be taken, if facts are correct.

Where is Raju?

Meanwhile, Raju is believed to have fled India yesterday itself. There was no information at all about his whereabouts.

"We have no idea of where Raju is," a Satyam spokesperson told agencies over phone when contacted. Raju was also not reachable on his mobile despite several attempts. Top police sources said that they were not "tracking" Raju as of now and therefore had no knowledge where he is.

Raju became incommunicado after sending a letter to Satyam board Wednesday morning. There was utter confusion after a TV channel reported that he had left either for the US or Dubai.

Raju is believed to have met nobody in the last two days. It is also possible that he might have handed over his letter to company officials before becoming incommunicado.

However according to Raju’s lawyer, he was in Hyderabad and might address a press conference later in the day. The reporters who rushed to his house in upmarket Jubliee Hills were told by the security guards that he was attending a meeting in Satyam Infocity at Madhapur.

However, no senior official from Satyam could be reached to confirm this. A large group of reporters waited outside Satyam Infocity till late Wednesday but in vain.

The Hyderabad police were also reportedly trying to find the whereabouts of Raju. The Andhra Pradesh government has ordered a probe by crime branch. Police Commissioner B Prasada Rao Wednesday said they would act only if a shareholder or regulator lodges a complaint against Raju.

Some police teams were also sent to Satyam offices in the city to find Raju's whereabouts but they were unsuccessful in tracing him as well.