Satyam case:Sebi bans Raju, others for 14 years;seeks Rs 1,849cr

Tags: News
Closing five-and-a-half year long probe into the country's biggest corporate fraud, Sebi today barred erstwhile Satyam Computer's founder B Ramalinga Raju and four others from markets for 14 years and asked them to return Rs 1,849 crore worth of unlawful gains with interest.

The money needs to be deposited with Sebi within 45 days, while interest would be levied at 12 per cent per annum with effect from January 7, 2009 -- the day this mega-scam came to the light through a letter written by Raju himself.

The others facing the prohibitory orders include Raju's brother B Rama Raju (then Managing Director of Satyam), Vadlamani Srinivas (ex-CFO), G Ramakrishna (ex-vice president) and VS Prabhakara Gupta (Ex-Head of Internal Audit).

In its 65-page order, effective immediately, Sebi said these five persons "have committed a sophisticated white collar financial fraud with pre-meditated and well thought of plan and deliberate design for personal gains and to the detriment of the company and investors in its securities".

The regulator, which has exercised the powers given to it through promulgation of an ordinance for passing disgorgement orders, further said that the "financial frauds as found in this case are inimical to the interests of the investors in securities and endanger the

market integrity".

Sebi's Whole-Time Member Rajeev Kumar Agarwal said in his order: "I am convinced that this is a case where befitting enforcement action is necessary to send a stern message to the market to create an effective deterrence."

On January 7, 2009, Raju - the then Chairman of Satyam Computer - had sent an email to the Sebi, wherein he admitted and confessed to inflating the cash and bank balances of the company, besides understating liabilities and other financial mis-statements.

After the fraud came to the light, the government had ordered an auction for sale of the company in the interest of investors and employees of what was known at that time as the country's fourth largest IT firm.

The company was acquired by Tech Mahindra, then renamed as Mahindra Satyam and eventually it was merged with Tech Mahindra.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Faith is the opium of the masses, so Indians get addicted

    India is a nation of 1.27 billion. Let that number sink in, with all its zeroes. That’s a lot of people.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

M S Swaminathan

Public good research in agriculture

Public good research in agriculture is designed to promote risk ...

Zehra Naqvi

To hell and back

Here is a book that makes you wish there were ...

Bubbles Sabharwal

When your real & reel life heroes are the same

ALL the world’s a stage and we all are merely ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture