New Delhi: Bail applications of ex-Satyam chairman Ramalinga Raju and former managing director B Rama Raju were deferred for hearing to January 16.
SEBI's application for recording statement of Ramalinga Raju was also deferred to the same date by a local court.
Meanwhile, Satyam's three-member board constituted by the Government on Sunday met for the first time in Hyderabad on Monday to discuss ways to get the IT company back on track.
Eminent banker Deepak Parekh, IT expert Kiran Karnik and former SEBI member C Achuthan arrived at the Infocity campus of Satyam for the meeting, in which the Chairman of the board is expected to be elected. The Board members are likely to meet the press in the evening.
Shares in Satyam Computer Services Ltd jumped by two-thirds in early Monday trading after the Government stepped in to appoint a three-member board in a bid to restore confidence in the firm, which was rocked by India's biggest corporate scandal.
The new board is expected to lay out a roadmap for clients and staff in the wake of a billion dollar fraud that cast a cloud over foreign investment in the once-booming IT sector.
Deepak Parekh, a senior banker and one of the appointees, said late on Sunday the priority was to restore confidence and then look at financial issues such as restating accounts that the former chairman, since arrested, admitted had been falsified for years.
Ramalinga Raju and his brother B Rama Raju were arrested late on Friday on charges of criminal breach of trust, criminal conspiracy, cheating, falsification of records and forgery.
The fraud has hit Satyam's business prospects amid growing fears that some clients may cancel contracts after Raju admitted Satyam had overstated profits for years and that 94 percent of the cash and bank balances at end-September did not exist.
Satyam, which employs 53,000 staff worldwide, faces a crisis of "unimaginable proportions," stand-in CEO Ram Mynampati said last week, adding that liquidity was not very encouraging.
What lawyers say
New Delhi: Supreme Court Lawyer Ramji Srinivasan says the Raju brothers can apply for bail though not before submitting the necessary reports.
“Raju brothers will apply for bail today, conditions apply. They will be subjected to interrogation and will have to submit reports and not tamper with evidence and witnesses. The government should appoint a track team, combo of SEBI, company law and economic offences wing of the police. This will ensure no overlap and better co-ord
Though Senior Supreme Court Lawyer Vivek Sood says that bail for Raju brothers is doubtful..
“The only option that the Raju brothers have right now is to apply for bail but that is a matter of discretion for the court, and in a case of this magnitude it is doubtful whether the court will exercise the discretion. But Raju's voluntary confession might favour the bail,” he said.
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