Andhra Pradesh Chief Minister Y S Rajasekhara Reddy and his Telugu Desam rival N Chandrababu Naidu traded charges on the financial fraud at Satyam Computers but Reddy said the company's disgraced Chairman B Ramalinga Raju could be arrested, if necessary.

"Law will have to take its course. If necessary, we will definitely do that," Reddy told reporters here when asked whether Raju would be arrested.

He said things had come to light just about 48 hours ago and the police was looking into various legal angles and what actions has to be taken would be definitely taken. "None of us expected thing like this to happen," he said.

Reddy parried a question whether he was going soft because Raja was close to him. "What do you mean? You should have asked this to Chandrababu Naidu, the former CM."

Naidu hit back at Reddy saying this type of scams happened only during the present rule of Congress. During his tenure, Naidu claimed that only genuine entrepreneurs and those doing hard work were encouraged, he said in Hyderabad.

Reddy said the Crime Branch-CID has been asked to probe the fraud, Reddy told reporters on the sidelines of second day of seventh edition of Pravasi Bharatiya Divas in Chennai.