Satyam case: Ramalinga Raju, others get bail, sentences suspended

A metropolitan court in Hyderabad yesterday suspended the prison sentence handed out to B Ramalinga Raju, founder of the erstwhile Satyam Computer Services Ltd, and others a month after they were jailed for their role in the country's biggest accounting fraud.

The sessions court asked Raju and his brother B Rama Raju to furnish two sureties of Rs1 lakh each with a personal bond of Rs1 lakh, and pay 10 per cent of the fine imposed by the special court within four weeks of their release from jail.

"They shall also pay one tenth of fine amount within four weeks from the date of release on bail before the primary court (trial court), failing which they must undergo default sentence," the judge said in the order.

Sessions court judge M Laxman, who is special judge for economic offences, also suspended the sentences of the eight other accused and asked them to furnish two sureties of Rs50,000 each with a personal bond of Rs50,000 and pay 10 per cent of the fine amount within four weeks of their release from prison.

The court, however, made it clear that it was only an interim relief for Raju. The sessions court will continue hearing Raju's petition challenging the conviction and the sentences awarded by the Additional Chief Metropolitan Magistrate's Court (ACMM) in the over Rs7,000 crore scandal.

Raju, the main accused in the over Rs7,000 crore scam, and others, currently lodged in Cherlapally Central Prison, had filed appeals in the sessions court last week.

The ACMM court had, on 9 April, sentenced Raju and others to seven years' rigorous imprisonment for criminal conspiracy and cheating among other offences. It also imposed Rs5.35 crore fine on Raju and Rama Raju, while others were fined Rs25 lakh each.

Defence lawyers argued that Raju and other convicts had already served a substantial part of their jail sentences as they had spent about 35 months in jail during the investigation and trial, so the sentences could be suspended for now.

The defence also contended that fines imposed by the trial court were "exorbitant" their clients had no source of income, their bank accounts had been frozen by CBI and properties attached by Enforcement Directorate, so they were unable to pay the fines.

CBI's special prosecutor K Surender said the plea for suspension of the sentence amounted to seeking suspension of the judgement of the trial court, which was permissible only in special circumstances. No such circumstances existed in this case, he argued.

"The act of Raju and others in fabricating documents of the erstwhile Satyam Computer Services Ltd (SCSL) over several years caused loss to the investors to the tune of several thousands of crores of rupees," the prosecutor said, claiming that the accused did have the means to pay the fine.

The court would hear next month the appeals filed by Raju and the nine others against their conviction.