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.

Comments

 

Other News

“900 tenders worth Rs 150 crore?” For ward-level works: BMC

BrihanMumbai municipal corporation is floating nearly 900 tenders worth of Rs 150 crore in the next 10 days, but that is only for ward-level civic works, the BMC clarified on Monday, reacting to reports in a section of media.    “Since there are 25 wards in BMC, it involves m

Elections 2024: Banks, post offices to chip in for voter education

In a first-of-its-kind initiative, Election Commission of India (ECI) on Monday signed a memorandum of understanding (MoU) with two prominent organisations, the Indian Banks’ Association (IBA) and the Department of Posts (DoP), to amplify its voter outreach and awareness efforts ahead of the forthcom

Charming tales of the Snakeman’s early years

Snakes, Drugs and Rock ’N’ Roll: My Early Years By Romulus Whitaker with Janaki Lenin HarperCollins, 400 pages, Rs 699

Gripping graphic narrative helps make sense of pandemics past

The Moral Contagion By Julia Hauser and Sarnath Banerjee HarperCollins, 140 pages, Rs 699 The world has lar

“Globally, there is unprecedented positivity for India”

Addressing the Viksit Bharat Viksit Uttar Pradesh program in Lucknow on Monday, prime minister Narendra Modi launched 14,000 projects across the state, worth more than Rs 10 lakh crore at the fourth groundbreaking ceremony of UP Global Investors Summit held in February 2023. The projects relate to sectors

World’s biggest bird-a-thon begins in India

During the four days from Feb 16, more than a thousand birdwatchers throughout India are coming together with the goal of documenting as many birds as possible across the country’s diverse locations. Over one lakh birdwatchers globally participate in the annual Great Backyard Bird Coun

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter