Satyam diverted foreign earnings: SFIO

NEW DELHI: The Serious Fraud Investigation Office (SFIO) has found clear indications that Satyam Computer Services diverted part of its foreign earnings even before they reached the country, a government official said. According to SFIO, Satyam diverted part of its foreign earnings to tax havens like Mauritius before routing it back to Maytas Infra and other entities owned by founder and former chairman B Ramalinga Raju and his relatives, a senior official privy to the confidential report told ET on condition of anonymity.

The Enforcement Directorate (ED), the agency responsible for enforcing laws on foreign exchange regulations and money laundering, is sniffing through Satyam���s foreign receipts to track the fund flows, the official said. There were no signs of funds being siphoned out of Satyam���s Indian bank accounts, SFIO said in its final report submitted to the government last week.

Satyam receives more than 90% of its earnings from outside India. The investigation suspects that the diverted earnings eventually reached Maytas Infra. It pointed out that the Mauritius-based investment firm SRS Orion Investment had invested heavily into Maytas Infra as well as Maytas Properties, another subsidiary firm owned by the Rajus.

SRS Orion, which reportedly invested Rs 600 crore in Maytas Properties, had told the Company Law Board in February that it demanded Rs 806 crore from the Indian company and sought to convert its compulsory convertible debentures into shares. The ED would particularly look into the flow of Satyam���s earnings from the US, which accounts for 75% of its total revenues, the government official said.