SFIO fails to trace Rs760 crore raised by Satyam in US

06 May 2009

The Serious Fraud Investigation Office (SFIO) has failed so far to trace the amount of Rs760 crore raised by fraud-hit Satyam Computer Services in American depository receipts, in 2001 and has referred it to the Enforcement Directorate for follow-up.

Satyam, which raised Rs760 crore in the US through an issue of American depository receipts in 2001, claimed to have deposited the amount in the New York branch of Citibank.

SFIO said it had taken up the matter with Citibank, but failed to trace the amount.

The SFIO report said the agency also could not so far verify Satyam's claims of depositing funds raised in the US in the bank's New York  branch so far. Nor has the company transferred Rs397 crore to India as Satyam claimed.

''It was wrongly mentioned to have been transferred to India and the actual utilisation of this amount could not be traced as all the amounts were transferred from this account to some unknown accounts through Citibank, Bahrain," the SFIO report said.

"They are still showing their inability to provide this information on the plea that all such transfers are routed through Citibank's system account No 10996665 Citibank, NA Bahrain," the report said.