Satyam empire extends to 40 companies

17 Jan 2009

HYDERABAD: The Ramalinga Raju empire is much wider than what it was originally thought to be. TOI investigations now show that the Raju family had spawned more than 40 companies in the last 15 years. A majority of these companies — spread across 10 states — sprang up in the last four years and most of them were engaged in agriculture and other allied activities.

"These were companies that acquired land, part of which were sold to Maytas Property. The companies were also investing in Maytas Infra through a complex web, the trail of which is difficult to establish," a highly placed source told TOI. On paper, Maytas Property owns 6500 acres of land and Raju made an abortive bid last month to make Satyam take over this company for $1.3 billion. He offered only $0.3 million for Maytas Infra.

These revelations come even as Raju's links with investment honcho Nimesh Kampani — on whom the Hyderabad police has issued a look-out notice — have surfaced. The police is seeking to question Kampani for his association with Nagarjuna Finance, a company that too is under a cloud. Kampani is said to be in Dubai.

Infinite India Investment Company — a joint venture between Kampani's JM financial group and Florida based SRS Investments — is said to have pumped in Rs 600 crore into the privately owned Maytas Property and also took up an equity stake in the company early last year. The investment was with central government approval.

Sources said that all the 41 companies spawned by the Rajus had Ramalinga Raju, his wife Nandini Raju, his brothers Suryanarayana Raju and Rama Raju and their wives as shareholders. Ramalinga Raju's sons Teja Raju and Rama Raju (Junior) and their spouses and even infant children held shares.

"Every body saw Ramalinga Raju as the czar of Satyam but his main interest was in Maytas Property that was incorporated in 2005 and in these 41 companies,'' said an insider. Officials of the Serious Fraud Investigations Office (SFIO) have spent long hours at the Maytas Property's headquarters in Hi Tech city in the last few days.

After the breaking out of the Satyam scam, the Raju family is trying to virtually shut down Maytas Property and some insiders say that it is possible that in recent days attempts have been made to disperse the land bank of the company. Most of the staff of the company have been asked to quit on a day's notice.

Maytas Property is looked after by Ramalinga Raju's younger son, Rama Raju (Junior). But in his heydays, Ramalinga Raju and Teja Raju (who looks after Mytas Infra) were frequently seen in the Maytas Property's office.

Maytas Property, besides developing an SEZ, a high-end residential "Hill County' in Hyderabad, three IT parks and commercial property, also proposed to get into commercial warehousing.