So, B. Ramalinga Raju, the former chief of Satyam Computer Services Ltd., who overstated his company’s assets and in turn ended up shocking India Inc., is back in jail (“Raju gets 7 years for Rs.7,000-cr. fraud,” April 10). This brings closure to India’s biggest corporate accounting fraud case. In its time, the Satyam scam raised several questions about corporate governance and the sanctity of the auditing process. Raju’s was the perfect rags-to-riches story that inspired a generation of budding entrepreneurs until it soured. But when it got exposed, it brought the credibility of the Indian corporate sector to its lowest ebb in the era of liberalisation. That it has taken six years for the judiciary to give its verdict is a shocking commentary on the Indian legal system just as the manner in which the fraud was perpetrated is a reflection of the appalling laxity in our regulatory framework at that point. How strong or weak the regulators of today are will be known only when another major fraud rocks the country.
J. Akshobhya,Mysuru
No tear will be shed for the plight and predicament of the former Satyam chief. The initial joyride of Mr. Raju, who took stakeholders and government watchdogs for a ride, and which later turned into a turbulent tiger ride — his own words — has lessons for all. I would also like to comment on his plea to take into account his “praiseworthy” acts of social service and philanthropy. Social service is not a licence to overlook earlier unethical acts. A person who is truly service-minded will never do anything anti-social. The conviction must come as a warning to India Inc. that however mighty and otherwise benevolent one might be, gaming with public trust is unpardonable.
Sivamani Vasudevan,Chennai
This is a scam involving thousands of crores of public money in the form of investments. When viewed against this, the quantum of fine and punishment imposed on Mr. Raju and others and their jail term would appear to be a ‘flea bite’. The real issue is on whether investors will get justice. The verdict will have meaning only when all persons involved are brought to book.
M. Somasekhar Prasad,Badvel, Andhra Pradesh
While it is heartening that the judiciary is beginning to take a serious view of criminal offences, the point to be noted is that judgments, as in this case, get diluted when the case drags on for years. With the passage of time and fading memory, the severity of the crime committed by the accused gets diluted. Sensitive cases such as this one must be taken up by special fast track courts and verdicts pronounced within a few months.
Tharcius S. Fernando,Chennai
Over-invoicing, no provision for doubtful recoveries, over-capitalisation of assets, asset revaluation and window-dressing of accounts are the areas that need to be examined thoroughly. In this case, the accountability of auditors and the board of directors has to be fixed. Similar to RBI monitoring for banks and CAG audits for government companies, the government has to give more teeth to the Serious Fraud Investigation Office to function as the apex body in curbing corporate frauds.
S. Balasubramanian,Chennai
