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ITIR Region, Hyderabad, India. About Information Technology Investment Regions Policy of Govt of India. FEBRUARY 2010

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CBI charges Raju brothers with I-T fraud

Hyderabad News. TOI 08.01.10

The infamous Raju brothers of Satyam had conned the income tax authorities in India by bombarding them with their brand image as a top notch IT firm in the country and also about their alleged tax remittances to the tune Rs 329 crore in US and other foreign countries for which they managed toget exemption from paying tax in India.

According to the supplementary charge sheet that was filed by the CBI in the Satyam case in the local CBI court here on Thursday, the brothers did not pay any such thing as tax abroad and what they had shown to the Indian IT authorities too was proved to be a document created in their office.

It accused the companys disgraced former chairman B Ramalinga Raju, former MD Rama Raju, the then CFO Vadlamani Srinivas, former vice president , finance, G R a m a k r i s h n a and the two PW House auditors with defrauding both the income tax department and the company.

Interestingly, the CBIs 30 page supplementary charge sheet speaks about many of the gimmicks by Raju brothers in this regard. As per the figures inflated by them, Raju brothers had to pay an amount of Rs 526 crore as income tax to the Indian authorities . To avoid this, the accused had taken recourse to the sections 90 and 91 of the Income Tax Act wherein the foreign remittances towards tax would provide them some exemption in India.

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In fact, the Raju brothers made no such remittances abroad. The documents were created for the purpose of getting exemptions here. However , they paid Rs 126 crore as income tax to the Indian authorities.

The CBI in its charge sheet maintained that this was a loss to the company because this was also paid on the inflated and non-existent revenues and moreover the accused did not seek the refund of tax deducted at source.

According to the CBI, the accused paid the tax on inflated income to hoodwink the authorities. CBI DIG V V Lakshminarayana who came to the court on Thursday to file this supplementary charge sheet told TOI that the accused were charged with offences like criminal conspiracy, criminal breach of trust, cheating, forgery for the purpose of cheating, use of forged documents as genuine and falsification of accounts.

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