Explosive Details: Raju's Dark Side Known Since 2002

Hidden under layers of dust and grime at a non-descript income tax office in Hyderabad, a can of worms in the Satyam saga is waiting to explode. A six-year old report, buried in a labyrinth of files, maps out an intricate web of companies and ‘benami’ — or anonymous — bank accounts allegedly used by Satyam’s former chairman Ramalinga Raju and his relatives to move money around and carry out trading in Satyam shares.


In 2002, the I-T department stumbled upon a complex layer of transactions when its Hyderabad office noticed a number of “Form 15H” filings, a category of I-T returns used by senior citizens where exemption is sought for not deducting tax at source.


These forms were associated with accounts created without proper documentation. “Except for the name and signature, nothing was obtained in the name of documentation,” the report said.


The tax sleuths initially focused their probe on a transfer of Rs 19.5 crore by Satyam promoters to various family members. These included Ramalinga Raju’s father, the late B Satyanarayana Raju, his mother B Appalanarasamma, two brothers and their wives, sons B Pritam Teja and B Rama Raju, and other relatives.
The report, put together by Hyderabad’s I-T department in 2002 but on which no action was taken, says the Raju clan essentially carried out two kinds of transactions.


First, advances were made by the Satyam promoters to a category of individuals and proprietary firms which the report describes as “end-depositors.” These entities and individuals then used the funds to open fixed deposits. These fund transfers were carried out through a layer of intermediaries.


Source Google