YSR CBN FOREIGN EXCHANGE LINK WITH SATYAM RAMALINGA RAJU

The Satyam Computer Services fraud rocked the Andhra Pradesh assembly Monday with Leader of Opposition N. Chandrababu Naidu alleging

that IT firm's former chairman B. Ramalinga Raju financed the business of Chief Minister Y S Rajasekhara Reddy's (YSR) son.

However, the ruling Congress party hit back by accusing Naidu of receiving money from Raju, including for the education of his son in the US.

Initiating the debate in the house, Naidu said alleged a "nexus" between the government and Satyam, and claimed that the Crime Investigation Department (CID) inquiry ordered by the government was trying to cover up this nexus.

The Telugu Desam Party (TDP) president claimed that 14 companies run by the chief minister's family were used for money laundering by Raju. "He (Raju) pumped money into your companies," he told YSR.

Naidu accused the chief minister's son, Y S Jaganmohan Reddy, of violating rules including foreign direct investment rules, Foreign Exchange Regulations Act, Securities and Exchange Board of India (SEBI) and registrar of companies rules.

The former chief minister claimed these companies received Rs.6 billion (Rs.600 crore) from various sources and the same money was used to publish Telugu daily 'Sakshi' and launch 'Indira' television channel.

Naidu said the massive fraud has brought shame to the state and accused the Congress government of shielding the guilty.

He pointed out that the SEBI had to approach the Supreme Court to interrogate Raju and other accused. He also referred to the statement of the SEBI chief that Raju was under protective custody of the state.

However, the Congress party said it was Naidu who received money from Raju. Government chief whip N. Kiran Kumar Reddy said it was during Naidu's rule that Raju got all the patronage. He alleged that the NTR Trust and various other trusts of the TDP received money from Satyam.

Outside the house, the Congress leaders also alleged that Raju provided funds for the education of Naidu's son Lokesh in the US.

Reacting to this, Naidu said if it was proved he was ready to go to jail. "Today when even a poor man is sending his children to the US for higher education, can I not bear the education expenses of my only son?" he asked.