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

Changing weather patterns, climate change responsible for Nepal floods

The interaction between active Western Disturbances, increased atmospheric moisture and the region’s complex topography aswell as global warming are important factors behind intense rainfall in the Himalayas, leading to flash floods in Nepal, according to meteorologists. Nepal

A right she cannot reach

Last summer, the two of us spent several weeks in rural Madhya Pradesh with a non-profit that works on gender justice through women’s self-help groups. We went in with a notebook full of laws. The Protection of Women from Domestic Violence Act. The Dowry Prohibition Act. Free legal aid for every wo

Tier-2 cities lead India’s digital credit push

Digital payments have become a reflex for urban India, but the confidence earned in paying has not yet carried over to borrowing. That is the central finding of `How Urban India Pays Report 2026`, released by Pahlé India Foundation in collaboration with Amazon Pay. Based on a survey of 5,149 consu

India calls for doubling bilateral trade with UK by 2030

Commerce and industry minister Piyush Goyal has called upon businesses in India and the United Kingdom to translate the opportunities created by the India-UK Comprehensive Economic and Trade Agreement (CETA) into expanded trade, investment, partnerships and job creation. Addressing the Bu

Gandhian movement after Gandhi failed: Ram Guha

The Gandhian movement in India, after Gandhi’s death, failed, says Ramachandra Guha, and blames Vinoba Bhave for it. But the movement found new, fertile grounds around the world and succeeded in bringing about a change in South Africa, the US and elsewhere. It is high time it returned home. Of cour

When religion, politics and Bollywood come together

Tavleen Singh, noted journalist and political commentator, has turned to fiction, with her debut novel ‘The Actor’ (HaperCollins India). Set in the near future, it has a superstar, Amit Singh, turning to politics, when the political landscape is dominated by prime minister Guru Gaynendraj

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter