Andhra Pradesh High Court stays Satyam accounting fraud trial

HYDERABAD: The Andhra Pradesh High Court on Thursday stayed the just began trial in the accounting fraud at software outsourcer Satyam Computer Services that recently saw completion of a prolonged process of recording evidences.

Justice L Narasimha Reddy of AP High Court stayed the trail for a period of four weeks and served notices on Enforcement Directorate (ED) and Central Bureau of Investigation (CBI), while entertaining a petition filed by the fraud accused.

Two of the accused - Satyam Computer's former chief financial officer Srinivas Vadlamani Srinivas and vice president ( finance) G. Ramakrishna, moved the court contesting the jurisdiction of the CBI court where the trial started recently.

Citing the provisions of the money laundering Act which prescribes a Sessions Judge court to take up trial in such cases, the accused sought the court to stay the current trial and shift it to a Sessions Judge who could take up trial over charges of both CBI and ED.

The CBI has been probing the accounting fraud for nearly three years after arresting the nine key accused in the case after Satyam Computer's founder Ramalinga Raju on 7 January 2009 admitted to have cooked the books of accounts at least to the tune of Rs 7,136 crore. All the accused are currently out on bail.