Blue-eyed boy in deep waters

Hyderabad, Jan. 7: The disgraced Satyam Computers boss, Mr B. Ramalinga Raju, was a blue eyed boy of both the Congress and the Telugu Desam governments. The two Chief Ministers, Mr N. Chandrababu Naidu and Dr Y.S. Rajasekhar Reddy, went out of the way to dole out benefits to Satyam and Maytas, owned by Mr Raju’s sons. Allotment of a Rs 120-crore contract to reconstruct a 30 km road near Gandikota dam in Kadapa district to Maytas is the latest in a series of benefits given to the company. In this particular instance, the Chief Minister, in a meeting on August 6, 2008, bypassed rules to award the work on nomination basis. Even in the case of the Machilipatnam port, the Chief Minister turned down the proposal not to pay in cash the additional amount of Rs 335 crore sought for shifting the port location. Dismissing a high-level committee’s recommendation to adjust the money in the lease rentals, Dr Reddy directed officials to pay the amount in cash in six instalments. He later reduced it to three instalments. It was during Mr Naidu’s time that Mr Raju used his managerial skills as well as connections to become an IT industry czar. He shot to fame after he shared the dais with the United States President, Mr Bill Clinton and Mr Naidu at a CII meet in Hi-tech city in Hyderabad on March 24, 2000. Earlier, Mr Naidu was instrumental in giving the company the Gauthami power project. A senior Telugu Desam leader defended Mr Naidu by saying that he had encouraged all companies including Satyam. "Naidu was the architect of the IT growth in Andhra Pradesh," he said. The TD leader added that he was not aware whether Mr Naidu had any stakes in the company.

State falls in money trap

Hyderabad, Jan. 7: The state’s interests worth about Rs 70,000 crore are directly involved and at stake with the future of the controversial Maytas Infra owned by Satyam Ramalingaraju and his sons. The company has either been executing or about to ground different irrigation, road, port and rail projects some on its own and others in the joint venture mode. The worst hit could be the much talked about Rs 13,000-crore Hyderabad metro rail project on which even the government lost hopes after the Wednesday’s developments. Despite the company’s image getting aroused and questions being raised about its ability to mobilise funds, the government is in a piquant situation of "wait and watch." Though the Chief Minister, Dr Y.S. Rajasekhar Reddy, decided to review all the projects executed by Maytas, inquiries revealed that the government at this stage can not terminate the contract in any of the projects. "March will be crucial because the Maytas-led consortia shall have to achieve financial closure for both metro rail and Machilipatnam port," a official said adding that the first step towards termination of the contract could be taken only if the company failed to reach the prescribed milestones including the financial closure. Maytas paid Rs 11 crore to the government and produced bank guarantee of Rs 60 crore in the rail project.

Satyam haunts other IT firms

Hyderabad, Jan. 7: Hyderabad-based information technology (IT) companies fear that following the multi-billion Satyam fraud, they too would have trouble getting new orders from clients. In fact, the companies believe that Hyderabad’s reputation was at stake globally. In the last financial year, Andhra Pradesh had registered around Rs 25,000 crore worth of software exports. Till recently, the software companies were hopeful of registering at least five per cent growth in 2008-09. This despite the ongoing recession. However, the sudden developments in Satyam has shattered their hopes. They did not want to spell out their views on record. "After the Satyam fraud, everybody doubts the corporate governance system. Certainly there will be some impact on the industry," said sources in various IT companies. According to some IT experts, many more IT professionals may lose their jobs as several companies are likely to be in deep financial trouble because they will have trouble getting orders from clients. The small companies will be hit the worst. The industry professionals, who are worried about the unexpected developments, feel that things will get clear only in the days to come.

Maytas wants state to pay Rs 100 crore

Hyderabad, Jan. 7: The Maytas Infra has stepped up pressure on the state government to pay Rs 100 crore "as soon as possible" in the Machilipatnam port project. The company is a major shareholder in the Machilipatnam Port Limited (MPL), and had signed the concession agreement along with the Nagarjuna Construction Company for developing the port. The government had promised to pay Rs 335 crore as compensation for shifting the port location in three equal installments. Ironically, the MPL wrote a letter to the government asking for the payment as well as handing over of 6,262 acres that the government had promised for the port project after the Satyam-Maytas deal fiasco. The company’s move appears to be a strategy to avoid any action by the government even if it fails to achieve financial closure before the March deadline. "Currently, the government cannot do anything except wait till March, by which time the MPL should achieve financial closure," a senior official said. Inquiries revealed that the company linked up the two issues to the financial closure. The company informed the government about completing several tasks like conducting environmental impact assessment, finalising the alignment and designs. It, however, asked the government to formalise the promised support from state towards additional cost. The MPL also said the company could not approach financial institutions for evaluation unless the two issues were addressed. Sources said the government had so far handed over 412 acres and the proposal for another 900 acres was with the chief commissioner of land administration. The Krishna district collector had recently sent the proposal for handing over another 2,000 acres. The project outlay is Rs 1,555 crore for constructing three berths in the first phase.

No trace of Raju

Hyderabad, Jan. 7: B. Ramalinga Raju became incommunicado after he announced his resignation on Wednesday. Initially, he was said to be in his office at Madhapur. However, according to company spokespersons, they had no idea about his whereabouts. Mr Raju and other senior officials of the company were not reachable throughout Wednesday. According to the immigration department at the Shamshabad international airport, Mr Raju had not turned up at the airport. Speculation mounted when a local television channel reported that Mr Raju had left for the US. Meanwhile, the Chief Minister, Dr Rajasekhar Reddy, ordered a CID probe into the whole episode on Wednesday. Mr Raju may face arrest anytime depending upon the progress of the investigation. Reportedly, the CID is studying the possibility of arresting Mr Raju immediately based on his confession. Sources said, the CID would initiate its inquiry as soon as it gets a written communication from the state government. The agency is likely to collect records from the company and try to corroborate Mr Raju’s confession with the company records. The outcome may lead to Mr Raju’s arrest, sources said.

Man protests in front of Satyam

Hyderabad, Jan. 7: Satyam investors are getting increasingly more agitated. According to the Madhapur inspector, Mr Bhujanga Rao, an investor named Vivek came and started protesting against the Satyam management after the share price dipped to Rs 39.95. "He started protesting as he had lost a lot of money. He has 1,800 shares," Mr Rao said. Police, however, did not register any case against him. "There is a check post right in front of the Satyam office in Madhapur. Our personnel immediately reacted and brought him to the police station." Asked whether security had been beefed up at Satyam offices, the Madhapur DCP, Mr Vijaykumar said Satyam Computers has two facilities in their jurisdiction and they did not receive any requests from Satyam for the security.

Ramalinga to be ousted from 108

Hyderabad, Jan. 7: The Satyam boss, Mr Ramalinga Raju, who boasted of the 108 EMRI ambulance service as his own, — despite the state government funding 95 per cent of it — will soon be out of its advisory board. The CEO of 108 has confirmed that Mr Raju is likely to resign from the advisory board soon. "It is likely that Mr Raju will resign. As his image has taken a hit, he should quit. He currently funds five per cent of the operational costs of 108. We are looking for other people who can fund this five per cent," said Mr Venkat Chengavalli, the CEO of 108. Mr Raju had claimed credit for the success of 108 ambulance services at several forums until the Chief Minister, Dr Y.S. Rajasekhar Reddy, openly chided the foundation as well as government officials for not giving due credit to the government. He directed the officials to paint Rajiv Gandhi’s photos and Aarogyasri slogans on ambulances instead of the Satyam logo. Dr Reddy announced that it was the state government which was funding the project, while Satyam was just a technological partner. Sources said that the state government now plans to take the technology management aspect into its control as well if the EMRI fails to manage it due to current crisis. Elsewhere, the Satyam Foundation and the Byraju Foundation, of which Mr Raju is a trustee, have stated that his resignation will have no impact on their operations. Meanwhile, it has been revealed that the Satyam group had hoodwinked even the Telugu Desam government in its "Mee Kosam" project. Mr Raju had himself encouraged the then CM, Mr N. Chandrababu Naidu, to propagate his government’s achievements through digital screens. As a pilot project, one digital screen was set up near NTR Gardens and it became defunct within two weeks. The company, however, did charge the government.

Terror doc was Kims student

Hyderabad, Jan. 7: Dr Anwar Ali Bhagwan, 26, an Indian Mujahideen suspect who was arrested by the Pune police, was pursuing a medical course in Krishna Institute of Medical Sciences (Kims) in the city. Sources in the state police said Dr Bhagwan had sheltered the IM chief Riyaz Bhatkal and other activists involved in several explosions, including the twin blasts in Hyderabad, in his house in Pune. "He was not involved in any terror activity in the city. He just provided them a shelter. But, his activities in Pune and Mumbai are highly suspicious. There is a MCOCA case against him now. Gujarat and Karnataka police are also looking into this case. He and the terror techie Mansoor Peerbhoy, who was trained in the city, were classmates in an Arabic language class," said an official. Dr Bhagwan was residing in a flat in Secunderabad. He was arrested on his arrival in the city. Riyaz and his brother Iqbal Bhatkal are absconding and are key suspects in the case. It is also suspected that Dr Bhagwan has provided the anaesthetic injections and packets of ketamine, an anaesthetic drug used for kidnapping the targets of the IM. A senior police official said, "Dr Bhagwan did not plant any explosives. But he knew about the plot. Ideologically he was with the activists. To avoid arrest he left Maharasthra and came to Hyderabad." The police had earlier arrested Mansoor Peerbhoy, Aneeq and Akbar Ismail of the Indian Mujahideen for the serial blasts in the country. Authorities at the Kims were not available for comments.

Bengaluru kid found in city

Hyderabad, Jan. 7: Seven-year-old Ankush Lakshman who went missing from Bengaluru on December 30 was found on Wednesday at Yacharam Mandal within the Cyberabad limits. The police is yet to trace his abductor. The police said the boy was left with a vegetable vendor called Ilamma at a village market at Yacharam Mandal on Tuesday. "She told us that the person had told her that he would come back to take the boy," said Mr A. Anjaneyulu, the Yacharam SHO. As the boy’s guardian didn’t return, she took him home on Tuesday night. On Wednesday, she brought Ankush along with her to the Kothapet Market at LB Nagar and informed the Yacharam police about him. The police said that after the incident, the boy’s parents started receiving ransom calls from various parts of Bengaluru and Andhra Pradesh. As the Bengaluru police had faxed the boy’s picture to various police stations in the state, the LB Nagar DCP had ordered to put up pictures of Ankush at all important places within his jurisdiction. On questioning the boy, it was found that a person named Krishna and his accomplice had brought him to the city. Ankush’s mother Saraswathi said that Krishna was her sister’s husband. Ankush’s father is an autorickshaw driver in Bengaluru. The child, a Class I student of New Indian Public School, Gowri Palya, Bengaluru, was kidnapped on his way back from school. The boy is a resident of Gangappa Garden, half-a- kilometre from his school. The Bengaluru police team along with Ankush’s parents are on their way to Hyderabad. They are expected to reach the city late on Wednesday.

Class VII student attacked

Hyderabad, Jan. 7: An unknown person attacked a Class VII student while she was on her way to school on Wednesday at Gandhinagar. According to the police, the 14-year-old-girl sustained minor injuries but she refused to be admitted to the hospital. She is a resident of Tallabasti. The police has registered cases under Sections 324 and 506 of the IPC.

Haritha harassed again

Hyderabad, Jan. 7: G. Haritha, a victim of physical assault by the city police, was harassed by the police again on January 2. “Instead of co-operating with us, the police did not even register a complaint against the concerned officials,” said Ms Haritha, who wanted to lodge a complaint against a woman IPS officer who had manhandled her. She said that she was tortured and threatened to be killed in connection with a family dispute which made the police register a case against her. It may be recalled that in 2003, Ms Haritha and her husband Mr M.A. Khadeer alleged that police officials entered their house and threatened to kill them if they were found in the city. Haritha said that she had married Khadeer with the consent of their parents and that the couple were trying to go to the US. A social organisation said the High Court’s order to take action against the Begumpet police for not registering the case has also gone unattended.

NFL men granted bail by HC

Hyderabad, Jan. 7: The Nagarjuna Finance directors, Mr K.S. Raju and Mr P.K.S. Madhav, were granted conditional bail by the High Court on Wednesday. However, the High Court rejected Mr Raju’s plea to exempt him from the liability of paying depositors’ amount back. Both the directors were asked to pay Rs 10 lakh as security.

Eamcet on May 14

Hyderabad, Jan. 7: Eamcet will be conducted on May 14 and Icet on May 9, according to the schedule announced by the state government on Wednesday. The schedule for various common entrance tests for admission into professional courses for the year 2009-10 has also been issued. "Eamcet would be held on May 14 and Icet on May 9," the chairman of the Andhra Pradesh State Council of Higher Education, Prof K.C. Reddy, told reporters. While Ecet (for polytechnic) would be held on May 11, Edcet (B.Ed) will be held on June 7, Lawcet on May 30 and Pecet (post-graduate engineering) on June 10. Prof. Reddy said the notification inviting applications from the students will be issued separately relating to each CET by the respective conveners soon. While JNTU, Hyderabad, will conduct Eamcet and Ecet, Andhra University will conduct Icet. The other entrance tests will be conducted by Osmania University (Edcet), Sri Venkateshwara (Lawcet), and Acharya Nagarjuna University (Pecet). "There will no change in the exam pattern for all the entrance tests. The model will remain the same," he said. He also said that the universities are taking all steps to ensure error-free question papers following the bitter experiences encountered last year in forcing the government to award marks. "We will hold the respective conveners responsible for all the errors as they have the power to appoint expert committees on various subjects to draft questions," Prof. Reddy said. It has also been decided to introduce web-based counselling for admissions right from the first phase for all the entrance tests. Last year, the initiative was introduced in Eamcet, Icet and Edcet, but only from the second phase of counselling.

Annavaram to get 500 cottages

Srikakulam, Jan. 7: Plans were being prepared to develop the Satyanarayana Swamy temple at Annavaram in phases with an estimated cost of Rs 100 crore. The incharge executive officer and joint commissioner of endowments at Kakinada, Mr S. Kondala Rao, who visited the Sun temple at Arasavilli here on Wednesday said the Annavaram temple will be developed to have all the basic infrastructure facilities. To popularise the temple and the sitting deity, special pujas will be conducted all over the state. As part of this, Satyanarayana Swamy vratam will be conducted at the Exhibition Grounds in Hyderabad. He said 500 modern cottages would be built at the temple complex.

Kuchipudi gets boost from fest

KUCHIPUDI (Krishna district), Jan. 7: The three-day Kuchipudi Dance Festival at Kuchipudi Village in Krishna district brought back the glory of the traditional dance. Many dance lovers who arrived in Kuchipudi to perform felt that more people should patronise the traditional dance styles in the country. Ms Anupama Kailash from Hyderabad felt that the festival brought hope to many dancers of this glorious art form. She said that these days, youth from rich families and particularly from cities are keen to learn Kuchipudi. Mr N. Lingaiah, head of the department for dance, Sri Potti Sriramulu Telugu University said, “Every year new personalities are being inviting to participate in the festival. Many dancers, including the leading artistes are very much interested to give performances at the birthplace of the famous dance.”

VIP passes rock Tirumala

Tirupati, Jan. 7: There were strong protests from devotees on Wednesday after the Tirumala Tirupati Devasthanams failed to keep its promise to restrict VIP visits. Though the TTD special officer (Tirumala), Mr Dharma Reddy, had said that only a limited 500 passes would be issued to the VVIPs with protocol facility, he was forced to issue more than 3,000 passes. Thanks to this, the auspicious day of Vaikunta Ekadasi-2009 turned out to be a sour memory for ordinary pilgrims. Further, the TTD was unable to keep its promise to allow devotees to have darshan of Lord Venkateswara through the Vaikunta Mahadwaram from 3 am. Instead, the pilgrims were allowed only after 6 am. There were long queues that stretched out to a distance of two and half kilometers reaching the Sankumitta cottage point. Angry pilgrims gheraoed Mr Dharma Reddy at the temple, following which he fled the spot.

US team to help NMDA

Hyderabad, Jan. 7: A US delegation, comprising experts in urban flood management, along with officials of the National Disaster Management Authority and the Greater Hyderabad Municipal Corporation visited the flood- prone areas in the city on Wednesday. The visit was part of NDMA’s plan to formulate national-level guidelines for urban flooding management. The 18-member delegation from the United Nations States Agency for international development (US AID), led Mr John P Woodly Junior, are here to participate in an international workshop on “Urban Flooding Disaster Management” that is to commence on Thursday. The workshop will discuss scientific, technological and administrative challenges faced during disaster management in flood hit areas. The Chief Minister, Dr Y.S. Rajasekhar Reddy, will inaugurate the event. The delegation visited Satham Tank, Nadeem Colony, Kukatpally Nala between Hyderabad Public School and Hanuman temple, Allamthota bavi, Brahmanwadi and Hussain Sagar surplus weir to formulate guidelines.The officials explained to the US team the salient features of the water drains and other works taken up to allow easy flow during heavy floods.

Naidu keeps mum

Hyderabad, Jan. 7: The Opposition parties, which always vie with each other to react quickly and attack the ruling party to derive political mileage on every minor issue, kept mum on Wednesday over the Satyam Computers issue. The Telugu Desam chief, Mr N. Chandrababu Naidu, who always took the first opportunity to take a dig on the government, conveniently evaded the media by confining to his house. According to the TD sources, Mr Naidu’s silence was because of his proximity with the chairman of Satyam Computers, Mr Raju. When journalist thronged the offices of Opposition parties to get the comments, the standard reply was, “We have not yet decided whether to comment on it or not. We will let you know later.” The TRS, the Left, the Praja Rajyam and the BJP also chose to remain silent over this issue. When journalists tried to get a reaction of the TRS chief, Mr K. Chandrasekhara Rao, reporters were asked to contact Mr K. Taraka Rama Rao, son of the TRS chief. However, he too did not want to speak over Satyam row.

Raju to be off 108 board

Hyderabad, Jan. 7: Mr Ramalinga Raju who boosted of ‘108’ EMRI ambulance service as his own organisation despite the state government funding it, will soon be out of its advisory board. The CEO of ‘108’ has confirmed that Mr Raju is likely to resign from its advisory board soon. “It is likely that Mr Raju will resign soon. He feels that as his image is dented, he should quit. He currently funds 5 per cent of the operation cost of 108. With the latest development, we are looking for some other people who can fund the remaining 5 per cent for our organisation,” said Mr Venkat Chengavalli, CEO, 108. Mr Raju claimed credit for the success of ‘108’ ambulance services at several forums until the Chief Minister criticised him.

Raju delivers second fudge

Hyderabad, Jan. 7: This is not the first time the founder of Satyam Computers, Mr B. Ramalinga Raju, pushed his company into trouble leaving the employees high and dry. Even before he emerged as a global business leader in the IT sector, Mr Raju had earned the dubious distinction of declaring his company “sick” leaving hundreds of employees in the lurch. Mr Raju set up a spinning and weaving mill called Sri Satyam Spinning and Weaving Mills Ltd at Shabhashpally in Narsapur Mandal. After running it for more than a decade, he declared it “sick” citing financial losses. He declared a lockout forcing hundreds of employees to go jobless. Some employees approa-ched the then TD government. The Congress government did not look into the matter. Later, the name of the Sri Satyam Spinning and Weaving Mills Ltd was changed to Samrat Spinners Limited.

Raju fraud may cost him 500 times

Hyderabad, Jan. 7: The outgoing Satyam Computers chairman, Mr Ramalinga Raju, and his colleagues may face a four-cornered inquiry for the fraud of over Rs 5,000 crore. As per the law, Mr Raju will have to undergo a jail term of 10 years and will have to pay 500 times the amount as penalty if the charges are proved under Section 45 of the Securities and Exchange Board of India Act. The Company Law Board and Registrar of Companies can initiate a suo moto inquiry on the basis of the statement given by Mr Raju on the inflation of funds in the company. "The registrar of companies need not wait for a formal complaint as Mr Raju has already admitted his guilt," said Mr Veera Reddy, a senior advocate of the AP High Court. "A probe can be ordered under Section 235 of the Companies Act 1976." Another advocate, Mr P. Subhash, said that Mr Raju’s statement also invited action under several provisions of the Indian Penal Code. It involves criminal breach of trust," he said. "Producing forged or fictitious documents for personal gains amount to criminal conspiracy." Mr Subhash said police could launch an investigation based on Mr Raju's statement. "The police should book a case under Section 477 (a) of the IPC dealing with the falsification of accounts against the company and Mr Raju," he said. In fact, Mr Raju’s statement also draws in the auditors and company secretaries into the ambit of the inquiry. The Institute of Charted Accountants of India could initiate a probe into the role of the auditors in the alleged fraud. "If the Institute does not initiate the probe, an investor can file a complaint, contending that he invested the money based on the audit report," said Mr V.V.L. Narasimham, a chartered accountant. Mr Veera Reddy pointed out that the company secretaries could also face an inquiry for their role in the fraud. "The company directors can also come under the ambit of the probe under the Securities Contracts (Regulation) Act, 1956," he added.