The CBI has charged Satyam founder B. Ramalinga Raju, his brother B. Rama Raju and eight others with creating fictitious customers and siphoning off Rs. 430 crores from the IT firm.
According to the supplementary chargesheet filed last month by the CBI, which probed the accounting scam in the company, the accused created fake customers and generated invoices against them in order to inflate revenues of Satyam Computer Services Limited (SCSL) to the tune of Rs. 430 crore, incurring expenditure to the tune of Rs. 65.88 crore.
“Adequate evidence has come on record to prove that the accused Rama Raju, SCSL employees G. Ramakrishna, D. Venkatpathy Raju and Srisailam have dishonestly and fraudulently conspired together to create seven fake customers in 2006 and got forged and fabricated invoices raised in the name of those customers to the tune of Rs 430 crore in order to inflate the revenues of SCSL to that extent,” the chargesheet said.
In order to inflate the account books, the accused created fake email IDs and sent mails on behalf of the seven customers to various associates of SCSL and urged them to continue the development of the products.
After an analysis of the emails, it was found out that the Internet Protocol addresses used for sending the mails were from within Hyderabad, clearly revealing the mails had not emanated from the seven foreign customers, the chargesheet said.
Further, it was also established that the emails were relayed by Rediffmail servers, which have a paid service facility called Domain Services, that lets clients create email IDs at their own domain names.
It was also revealed that the payments were made through Bank of Baroda Visa credit card, belonging to D Venkatapathy Raju, the chargesheet said.
The products were generated by wastefully spending several man-hours of company associates, wasting the resources of the company to the tune of Rs 65.88 crore against payments to these associates. The products are still lying in the archives of SCSL.
The CBI charged Rama Raju, G Ramakrishna, D Venkatpathy Raju and Srisailam with committing cheating, impersonation, forgery for the purpose of cheating and falsifying the accounts.
“The infusion of these fake invoices into the accounting system by the accused has resulted in reflection of the same in the financial statements of SCSL, which further prompted the investors to invest in SCSL, in view of the false financial stability and creditability created on the company,” the CBI said.
Similarly, Ramalinga Raju and B Rama Raju have conspired with V Srinivas, G Ramakrishna and D Venkatpathy Raju have forged the Board Resolutions and unauthorisedly obtained loans/advances from various banks/institutions to the tune of Rs 1,220 crores in the name of Satyam Computers, the CBI said.