CB-CID arrests Satyam's two PW auditors

Earlier on Friday, the 6th Metropolitan Magistrate of the Nampally Court rejected the petition of market regulator Securities Exchange Board of India (Sebi) to interrogate the Raju brothers - Ramalinga Raju and Rama Raju - in connection with the Rs 7,000 crore Satyam corporate scam that rocked the country recently.

Sebi had filed a petition with the court to record the statement of the Raju brothers. The court rejected the Sebi petition "on technical grounds" and not on merits of the case.

Maintainability and jurisdiction could be the reasons for the petition being rejected and it is said the Sebi may need to approach the appropriate higher court to get the petition reviewed.

The magistrate also asked the Serious Fraud Investigation Office (SFIO) to rework its petition to include suitable sections to interrogate the under-judicial-custody Raju so that it can be allowed to go ahead.

The magistrate also extended the judicial custody of the Raju brothers and ex-Satyam CFO Srinivas Vadlamani till January 31. The bail petition of Ramalinga Raju and Vadlamani will take place on January 27, while the order on Rama Raju's bail petition was postponed to January 28.

In a related development, the CB-CID confirmed the arrest of Gopal Krishnam Raju, the general manager of SRSR Advisory Services, a firm promoted the Raju family.

The police also conducted search operations at the office of Maytas Infra in Greenlands, Somajiguda area in Hyderabad.

With inputs from CNBC-TV18's Vishwanath Pilla