Indian court finds Satyam founder guilty of fraud

An Indian court has sentenced Ramalinga Raju, the founder of Satyam Computer Services, to seven years in jail after being found guilty of forging documents and falsifying accounts.

The founder of India's fourth-largest outsourcing company, Satyam Computer Services, has been found guilty of fraud, and has been sentenced to seven years behind bars.

An Indian court found Ramalinga Raju, his brother Rama Raju -- ex-Satyam managing director -- and eight former board directors of the company guilty of forging documents and falsifying accounts, according to a report by Reuters.

All have been sentenced to seven years in jail.

"The judgment given by the court will have far-reaching consequences in checking corporate frauds, and shall also act as a severe deterrent," said Rajesh Narain Gupta, managing partner at law firm SNG & Partners.

The report also said that Raju and his brother were each fined 55 million rupees ($882,968).

The conclusion of the case comes six years after Raju first admitted in 2009 that the company's assets were falsified in a fraud that was allegedly worth over $1.5 billion.

At the time, the brothers were detained by police on charges that included forgery, breach of trust, and criminal conspiracy.

It was previously unveiled that the fraud and deception within Satyam was so in depth that the company kept dual accounting books, thousands of forged invoices, thousands of unnecessary employees, and dozens of fake bank statements.

In addition, in April 2013, India's stock market regulator revealed that Raju had a secret debt arrangement in Matyas Infrastructure that was worth $77.3 million.

But despite the ongoing scandal, Satyam was eventually acquired by Tech Mahrinda, and was able to focus on global expansion plans. For example in Australia, the company had set its sights on tripling its headcount by 2015.

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