Spotlight: Is The Satyam's Raju Story Far From Over?

Satyam's Ramalinga Raju may have lost his `IT honcho' tag for good, but his career as a business wizard is clearly far from over. And this, Thursday's judgment notwithstanding.

If market insiders are to be believed, the Rajus, despite the legal tangles, are still actively involved in the property business, albeit discreetly. They claim that the clan continues to sit pretty on a massive land bank in Hyderabad, primarily spread over Medchal and its surroundings ­ the area from where the journey of Satyam Homes Pvt Ltd took off close to three decades ago.

If that's not all, the sons of Raju ­ Rama Raju and Teja Raju ­ are also believed to have floated a healthcare services firm, CallHealth Services Pvt Ltd, in November 2013, which, interestingly , comprises former senior employees of Emergency Management and Research Institute (EMRI), also a Raju venture. 

One such name is Sudhakar Nukala who served as chief operating officer, EMRI South. Nukala (as per his online professional profile) is currently designated as COO of CallHealth, that sources claim has already attracted an investment of over Rs 100 crore. EMRI, which supports the hugely popular 108/104 ambulance services, is being now managed by the GVK group.

But property clearly is the Rajus' first love. Not surprising then that several residents of Rama Raju Nagar, the first layout developed by Raju off National Highway-7 in Hyderabad, are spending sleepless nights these days. They fear that the original developer of the property ­ who incidentally is yet to handover the layout to the municipal corporation as per norms -might soon decide to bulldoze the aging blocks to make way for swankier homes. The 8.9 acre layout was designed in 1989.

“This is hot property right now with the price of the land hovering anywhere between Rs 50,000 and Rs 60,000 per square yard. Considering that the Rajus still hold possession of this land, it is quite likely for them to cash in on it,“ said M Sriram, former president of Rama Raja Nagar Residents Welfare Association. He added, “In fact, they have already started some commercial activity under the Prapurna Properties Pvt Ltd banner by leasing out retail spaces that have been illegally constructed on the four acres of common area available within housing society. We have documents to prove the same.“ Prapurna Properties Pvt Ltd is a construction firm run by Ramalinga Raju's close aide K S S Prasad Raju.

While the firm, ever since the Satyam fraud, has kept its works on hold, inside sources claim that its promoters are now deliberating on ways to resume construction. “The brother of Ramalinga Raju, Suryanarayana Raju, is seen making the rounds of the area (read: Medchal) every so often. This only indicates that the family is up to something. The company might soon start work too,“ said M Dharma Raju, a local from the area.

If that's not all, the family continues to enjoy a 20% share in the Hill County Properties Ltd venture ­ originally Maytas Properties Ltd ­ that, as per the order of the Company Law Board (CLB), in January 2011, was handed over to the IL&FS Group Entities, IL&FS Engineering & Construction Company Limited and IL&FS Financial Services Limited.They have acquired 80% stake in the paid up capital of the company .

“The job of finishing, handing over and delivery of the project, lies with IL&FS. The old promoters have 20% share,“ confirmed Arun K Saha, joint managing director & CEO, IL&FS (who is chairman of the Hill County management team) while dismissing any possibility of the Raju family making a comeback as a major shareholder. This, despite market sources indicating the presence of “several old hands“ in the senior management of the venture.