NEW DELHI - SATYAM founder B. Ramalinga Raju created a network of almost 300 companies to divert funds from the fraud-hit Indian outsourcing giant, an Indian minister said on Wednesday.
His comment came as a court in the southern city of Hyderabad threw out the bail applications of Raju, his brother and former managing director Rama Raju, and former chief financial officer Vadlamani Srinivas.
'It was a very complex process he (B. Ramalinga Raju) had adopted,' Corporate Affairs Minister Prem Chanda Gupta told Indian television network CNN-IBN in an interview.
'Our information is that there was a network of almost 300 companies and funds were diverted from one company to (another) and then to (a) third.'
The government believes other people were also involved in India's biggest fraud, which has shaken corporate India, he said.
'But if you go into the systematic inspection and investigation of the structure of the company, you come to the conclusion that the whole thing (revolves) around the Raju family,' Mr Gupta told the network.
B. Ramalinga Raju was arrested earlier this month, days after declaring that he had falsified a bank balance of over US$1 billion (S$1.5 billion) for the company based in Hyderabad. -- AFP
