In-Depth

All you need to know about the Satyam Scandal



>What

The scandal broke in 2009 when founder-chairman of Satyam Computers Ramalinga Raju confessed that the company’s accounts were tampered with. He disclosed a Rs.7,000-crore accounting fraud in the balance sheets.

>Who

The 10 people found guilty in the case are: B. Ramalinga Raju; 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.

When: The timeline:

  • January 7, 2009: Ramalinga Raju dropped a letter-bomb on unsuspecting investors, employees and the government confessing to a Rs.7,136-crore fraud committed by him and his close circle of relatives and employees at the company. Ramalinga Raju resigns. >read more
  • January 8, 2009: Citibank freezes Satyam's 30 accounts.
  • January 9, 2009: Ramalinga Raju and his younger brother B. Rama Raju arrested. Central govt disbands Satyam’s board, to appoint its own 10 directors. >read more
  • January 9, 2009: Satyam removed from Sensex, Nifty >read more
  • Jan 10, 2009: Satyam’s former CFO Srinivas Vadlamani arrested. >read more
  • Jan 11, 2009: Government appoints Deepak Parekh, Kiran Karnik and C. Achuthan to Satyam board. >read more
  • February, 2009:: CBI takes over investigation, goes on to file three chargesheets >read more
  • Mar 6, 2009: Gets SEBI nod for bidding process to select investor >read more
  • April 22, 2009: Tech Mahindra makes open offer to Satyam shareholders at Rs. 58/share, offer to close June 9 >read more
  • June 22, 2009: Mahindra unveils new brand identity for Satyam, Mahindra Satyam. >read more
  • 2010: Raju says charges levelled by CBI are false >read more
  • November 2, 2011: Supreme Court grants bail to Raju since CBI failed to file chargesheet on time. >read more
  • October 28, 2013: Enforcement Directorate files a criminal complaint against 47 persons and 166 corporate entities headed by Ramalinga Raju. >read more
  • December 8, 2014: Ramalinga Raju and three others given six months jail term by SFIO >read more
  • December 23, 2014: Judge postpones verdict citing voluminous documents >read more
  • March 9, 2015: Special court defers verdict till April 9 >read more
  • April 9, 2015: All 10 accused found guilty >read more

>Riding a tiger without knowing to get off: Raju

In his resignation letter to the board of directors of the company, Mr. Raju rued: “I am now prepared to subject myself to the laws of land and face consequences thereof.”

>The Satyam scam: separating truth from lies

Why did the then fourth largest IT company choose to take the criminal route of falsifying accounts and indulging in fraud?

>Investigating the Satyam scam

The arrest might be the start of an effective legal process to bring to justice the self-confessed perpetrator of the biggest corporate fraud in Indian history.

>Pursuing Satyam

The sheer audacity of what they did is evident from investigations done by Sebi which stumbled upon fake invoices and bank statements dating back by many years.

>CBI reveals modus operandi of Satyam fraud

The IT company had generated false invoices to show inflated sales.

>Satyam case: Sebi bans Raju, others for 14 years

Sebi also asks them to return Rs.1,849 crore worth of unlawful gains with interest.



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Printable version | Jan 25, 2021 5:12:12 PM | https://www.thehindu.com/specials/in-depth/all-you-need-to-know-about-the-satyam-scandal/article7227938.ece

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