Satyam's former chief, Ramalinga Raju, surrendered to the  Andhra Pradesh director general of police (DGP), S S P Yadav.  Yadav said Raju will be arrested after interrogation. His brother Ram Raju will also be arrested. The police may also arrest the chief financial officer, Srinivas Vadlamani.

Raju took the decision minutes after Andhra Pradesh CID filed a case against Raju. Raju will likely be charged under the Indian penal Code.

This will be the first time Raju has appeared in public since he made the disclosures of Rs 7000 crore fraud 48 hours ago.

It's more of an arrest because Raju surrendered when he came to know about the arrest.

A case of fraud will be filed against him. Lawyers said it would be too early to comment on the quantum of punishment though maximum punishment could also be life imprisonment.

It's going to be lenghty custodial interrogation over the weekend for Raju as he cannot be produced before the court of law before Monday.

UPDATE: Satyam Board disbanded

Meanwhile, Government has disbanded the present Satyam Board which consists of only three directors (The interim CEO Ram Mynampati,T R Prasad and Prof V S Raju). The Government will nominate 10 directors in a week's time. As a result, the board meeting scheduled to take place on January 10 (tomorrow) has been called off.

Welcoming the decision, Satyam said today that it has received a notification from the Company Law Board, Government of India, that it intends to appoint 10 nominees as directors of the company to replace the current board. In view of this decision the board meeting originally scheduled for January 10, 2009, has been cancelled. The new board is expected to meet within 7 days of its constitution.

“We welcome this decision which will ensure uninterrupted operations and restore the confidence of all employees, customers and shareholders across the globe,” the company said. 

The company added that Interim CEO Mr. Ram Mynampati had earlier written to the Securities and Exchange Board of India; the Company Law Board; the IT Secretary, Government of Andhra Pradesh; NASSCOM; and the Confederation of Indian Industry for recommendations to nominate independent directors. X