Court issues summons to Raju, others in Sebi case

An economic offences court here has issued summonses to Satyam Computer Services founder Ramalinga Raju, his brother Rama Raju and three former senior executives among others, to appear before it on 13 November in connection with complaints by capital market regulator Sebi.

Based on two complaints filed in August by the Securities and Exchange Board of India on alleged unfair trade practices adopted by Raju and alleged violations of the insider trading regulations committed by him and others, the court issued notices on Friday.

Earlier, the market regulator had slapped a penalty of Rs 1,849 crore plus 12 per cent interest per annum on them, besides banning the accused from the market for 14 years.

Sebi filed the complaints in the economic offences Court urging the court to punish the accused Raju brothers and CFO Vadlamani Srinivas, besides two former auditors of global auditing firm PWC, which allegedly helped perpetrate the country's biggest corporate fraud, among others.

According to Sebi complaints, the accused are punishable under Section 24 (a) under Sebi Act which carries punishment upto 10 years. The first complaint has eight people as accused and the other has 14 people and entities as accused.