Satyam scam: Raju, others move SAT against Sebi order

Facing a Sebi order to cough up Rs 1,849 crore plus interest for making 'unlawful gains' in Satyam scam, the erstwhile IT major's founder-chairman B Ramalinga Raju and four others have approached the Securities Appellate Tribunal against the market regulator.

The Tribunal has listed all the five pleas, filed separately, for hearing on Monday to consider their 'admission'.

Closing five-and-a-half year long probe into the country's biggest corporate fraud, Sebi on 15 July barred erstwhile Satyam Computer's then Chairman B Ramalinga Raju and four others from markets for 14 years and asked them to return Rs 1,849 crore worth of unlawful gains with 12 per cent interest resulting into total disgorgement amount of over Rs 3,000 crore.

Others facing the prohibitory orders include Raju's brother B Rama Raju (then Managing Director of Satyam), Vadlamani Srinivas (ex-CFO), G Ramakrishna (ex-vice president) and V S Prabhakara Gupta (Ex-Head of Internal Audit).

A Sebi order can be challenged before the SAT within 45 days of the directions being passed. While the two Raju brothers filed their present appeals against Sebi order on Friday, Srinivas, Ramakrishna and Gupta moved their respective pleas a few days earlier.

As per Sebi's order, the money was asked to be deposited with the regulator within 45 days, while interest would be levied at 12 per cent per annum with effect from 7 January, 2009, the day this mega-scam came to light through a letter written by Raju himself.

The disgorgement amount can exceed Rs 3,000 crore after taking into account the applicable interest payments.