The head count in the fraud hit Satyam Computers, which engaged the attention of investigating agencies considerably, is now become the curse for the company’s former directors.
A charge common to most of the accused in the complaints filed in a court here by the Serious Fraud Investigation Office (SFIO) is that they approved the company’s balance sheets and the director’s reports about particulars of employees that were never filed with the competent authority.
Among those whom the SFIO sought to prosecute for this offence were former company Chairman B. Ramalinga Raju and his brother Rama Raju and directors M. Srinivasan, Ram Mynampati, Krishna G. Palepu, Vinod K. Dham, T. R. Prasad, V. S. Raju and M. Rammohan Rao.
In its complaint to the special court for economic offences, the SFIO said the balance sheets for years 2002-03 to 2007-08 filed with the Registrar of Companies of Andhra Pradesh that the company did not furnish details of employees as required under the Companies Act. The SFIO also noted that when the issue was taken up with the company after the fraud came to light, it was informed by the management that the balance sheets and the director’s reports including the details of employees were filed with the Registrar of Companies within the statutory thirty days of annual general meetings.
However, the electronic record showed that the company had not filed them.
In the other complaints about the role of various directors in the fraud as per Companies Act, the SFIO said it found out that the company distributed dividend to shareholders without prior approval of the Central Government in 2007-08 though there was a loss of Rs. 44.31 crore that year.
The SFIO also said it found that the company only disclosed the amount of dividend remitted in foreign currencies and not the number of non-resident shareholders or the number of shares held by them.
The company failed to disclose information about fee paid to auditors for taxation and company law matters.