Date:08/01/2009 URL: http://www.thehindu.com/2009/01/08/stories/2009010856610400.htm

Andhra Pradesh - Hyderabad

KS Raju and Madhav get conditional bail

Legal Correspondent

HYDERABAD: Chairman of Nagarjuna Finance Ltd. K. S. Raju and former director P. K. Madhav, now in judicial custody, were granted conditional bail by Justice D. S. R.Varma of the A.P High Court on Wednesday.

Surrender of passports

The Judge ordered both of them to surrender their passports to the authorities, appear before the police two times a week.

He also asked them to furnish two sureties of Rs. 10 lakhs each.

Justice Varma passed this order on petitions filed by these two directors.

Mr. K. S. Raju and Mr. Madhav were arrested on December 15 under the provisions of the Andhra Pradesh Protection of Depositors of Financial Establishments Act following complaints by aggrieved depositors that the NFL had defaulted on payments of matured deposits

Stay vacated

Initially, there was stay on all the proceedings against the company and its directors but it was vacated by the High Court following which the police swung into action.

Mr. Raju was shifted from Cherllapally jail to the Nizam’s Institute of Medical Sciences (NIMS) after he complained of chest pain.