India's Central Bureau of Investigation (CBI) has indicted nine people in connection with an alleged $1 billion accounting fraud at IT outsourcing specialist Satyam.
The 300-page charge sheet names former Satyam chairman B Ramalinga Raju, as well as his brother and the company's ex-managing director, Rama Raju.
In January, Satyam's then-chairman had reportedly admitted the accounting fraud, saying he had wildly inflated the company's profitability and assets until the scheme had reached "unmanageable proportions".
Others charged in the CBI lawsuit include Satyam's chief financial officer at the time, Vadlamani Srinivas, as well as two former company auditors - S. Gopalakrishnan and Talluri Srinivas.
The defendants are accused of offences including criminal conspiracy, forgery for the purposes of cheating, falsification of accounts and causing the disappearance of evidence.
In all, the charge sheet cited 433 witnesses and 1,532 documents.
Earlier this month, the Business Standard reported that up to 300 Satyam staff employed on a project for Merrill Lynch when the alleged fraud was uncovered would be transferring to Bank of America.
Showing posts with label Satyam. Show all posts
Showing posts with label Satyam. Show all posts
Thursday, April 9, 2009
Wednesday, January 7, 2009
Satyam chairman admits £1bn fraud
The chairman of India's fourth-biggest provider of software services, Satyam, has resigned after admitting a £1 billion fraud that "wildly inflated" the company's profitability and assets, it has been reported.
B Ramalinga Raju said the deception had started out as an attempt to cover a small accounting discrepancy but had grown to "unmanageable proportions", the Times reports.
The fraud had apparently gone undetected by India's market regulators or the firm's auditor PricewaterhouseCoopers for years, the newspaper added.
"It was like riding a tiger, not knowing when to get off without being eaten," Mr Raju said.
The episode will raise fresh concerns about the state of corporate governance in India. IT had long been considered one of the best regulated industries in the country. Indeed, last year Satyam had received an award from the World Council for Corporate Governance, the Times noted.
India's corporate affairs minister Prem Chand told Reuters that the government will take "all necessary action" to fight corporate corruption.
Shares in Satyam, whose clients have included General Electric and the United States government, fell by 80 per cent after the fraud was revealed.
B Ramalinga Raju said the deception had started out as an attempt to cover a small accounting discrepancy but had grown to "unmanageable proportions", the Times reports.
The fraud had apparently gone undetected by India's market regulators or the firm's auditor PricewaterhouseCoopers for years, the newspaper added.
"It was like riding a tiger, not knowing when to get off without being eaten," Mr Raju said.
The episode will raise fresh concerns about the state of corporate governance in India. IT had long been considered one of the best regulated industries in the country. Indeed, last year Satyam had received an award from the World Council for Corporate Governance, the Times noted.
India's corporate affairs minister Prem Chand told Reuters that the government will take "all necessary action" to fight corporate corruption.
Shares in Satyam, whose clients have included General Electric and the United States government, fell by 80 per cent after the fraud was revealed.
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