Satyam chief admits massive accounting fraud, resigns

By PTI Jan 07 2009 , MUMBAI

Under attack over 1.6 billion dollar acquisition fiasco of firms promoted by his family,

Satyam Computer Chairman B Ramalinga Raju on Wednesday resigned and said he would subject himself to the "laws of land".

Minutes later, the company also announced resignation of its Managing Director B Rama Raju.

The resignations, ahead of January 10 board meeting pushed the company into crisis and paved the way for immediate restructuring of the board and the management.

Shares of the company also plunged by over 40 per cent soon after the resignations.

Satyam, considered a ripe proposition for acquisition, was pushed into crisis after Raju was forced to abandon the acquisition of Maytas Infrastructure and Maytas Properties promoted by his son.

In a regulatory filing the company said Raju would continue to be the chairman till the board is expanded.

"Under the circumstances I am tendering my resignation as the chairman of Satyam and shall continue in this position only till such time the current board is expanded. My continuance is just to ensure enhancement of the board over the next several days or as early as possible", B Ramalinga Raju said.

Post new comment