Satyam's Raju convicted and sentenced to 7 years RI in multi-crore fraud case

One of the biggest corporate fraud case was investigated by the CBI

GN Bureau | April 9, 2015

#Satyam   #Satyam computers   #Tech Mahindra   #Mahindra Satyam   #Ramlinga Raju   #CBI  

Satyam Computer Services Ltd’s founder B Ramalinga Raju and nine others have been found guilty of criminal conspiracy and cheating on Thursday by a special court in Hyderabad in the multi- crore accounting fraud case and sentenced them to seven years rigorous imprisonment.. Raju and his brother B Rama Raju have also been fined Rs five crore each while the eight others have been fined varying amounts up to Rs 25 lakh.

This is the third conviction for Raju after he confessed to cooking the books of Satyam to the tune of Rs.7,136 crore in January 2009. Later he disowned the statement.

Around 3,000 documents were marked and 226 witnesses examined during the trial that began nearly six years ago. Beside Ramalinga Raju, the other accused are, his brother and Satyam's former managing director B Rama Raju, former chief financial officer Vadlamani Srinivas, former PwC auditors Subramani Gopalakrishnan and T Srinivas, Raju's another brother B Suryanarayana Raju, former employees G Ramakrishna, D Venkatpathi Raju and Ch Srisailam and Satyam's former internal chief auditor V S Prabhakar Gupta.

Raju and others were charged with offences like cheating, criminal conspiracy, forgery and breach of trust under relevant sections of IPC for inflating invoices and incomes, account falsification, faking fixed deposits, besides allegedly falsifying returns through violation of various Income Tax laws.

In February 2009, the CBI took over the investigation and filed three chargesheets. The CBI accused Raju and the others of cheating, breach of trust by way of inflating invoices and incomes in the first and third charge sheets, the second one dealt with the accused allegedly falsifying returns through violation of various IT laws. During the trial, the CBI alleged that the scam caused a loss of Rs 14,000 crore to shareholders of Satyam.

The company was sold to Tech Mahindra Ltd. in April 2009 in an auction. Tech Mahindra rebranded it as Mahindra Satyam in 2013. It is now the country’s fifth biggest IT services firm.



Other News

18.9 million people to be unemployed by 2019

There are going to be 18.9 million unemployed people in the country by 2019, parliament was informed. Union minister Santosh Kumar Gangwar said that the International Labour Organisation (ILO) has released a report “World Employment and Social Outlook Trends – 2018”. As per

The key is to change bureaucrats’ mindset

For quite some time now there has been a lot of talk and focus of the government on the ease of doing business. Recently, the World Bank’s Doing Business 2018 report showcased the progress India has made by making a 30-point jump in its rank. Though there are about a 100 countries performing better t

Should Lingayats be granted religious minority status in Karnataka?

Should Lingayats be granted religious minority status in Karnataka?

Drop in diamond demand: Assocham survey

The PNB fraud involving Nirav Modi seems to have shaken the confidence of diamond jewellery buyers, especially from the unorganised jewellers, on purity concerns, resulting in drop in business in the trade, according to an Assocham survey. While the well-known branded jewellery makers issue

Know more about no confidence motion

The Telugu Desam Party, a former ally of the BJP, wants to move a no confidence motion against the Narendra Modi government. What is a no confidence motion? If a no confidence motion, also called a no trust motion, is passed, then the prime minister will have

Bad water on wheels

While train accidents get much attention, there’s something else that should equally be attended to: the railway’s drinking water supply, which could well have caused many more deaths than train accidents. Indian Railways has been routinely receiving complaints about the quality

Current Issue

Current Issue


CM Nitish’s convoy attacked in Buxar


Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter