Satyam Computer Services scam: B Ramalinga Raju, 9 other accused sentenced to 7-year jail term

By: |
Hyderabad | Updated: April 10, 2015 11:09:54 AM

The verdict has finally been pronounced in the Satyam Computer case with the court holding all the accused including B Ramalinga Raju guilty

Satyam Computer, Satyam Computer case, B Ramalinga Raju, Ramalinga Raju, Ramalinga Raju case, business newsTouted as the country?s biggest accounting fraud, the Satyam Computer scam had come to light on January 7, 2009, after the firm?s founder and then Chairman B Ramalinga Raju allegedly confessed. (PTI)

Satyam Computer Services scam kingpin B Ramalinga Raju and his brother B Rama Raju were today sentenced to 7 years rigorous imprisonment and fined Rs 5.5 crore after they were convicted by a special court in the Rs 7,000-crore accounting fraud that shook the corporate world six years ago.

Eight others, including former Chief Financial Officer Vadlamani Srinivas, former Price Waterhouse auditors Subramani Gopalakrishnan and T Srinivas, were also sentenced to seven years rigorous imprisonment and fined varying amounts up to Rs 25 lakh by Special Judge B V L N Chakravarthi.

The 10 accused were convicted of criminal conspiracy and cheating among other offences in the scam dubbed as the country’s biggest accounting fraud.

Once the poster boy of the ITeS industry, Byrraju Ramalinga Raju (60), and former employee G Ramakrishna were also found guilty under section 201 (causing disappearance of evidence of offence) of IPC by the judge in the case probed by CBI.

REACTION: Price Waterhouse, Bangalore
We are disappointed with this verdict given by the court of Hon’ble Additional Chief Metropolitan Magistrate at Hyderabad. As we have said many times, there has never been any evidence presented that either of our former partners S Gopalakrishnan or Srinivas Talluri were involved in or were aware of the management-led fraud at Satyam. We understand that Gopal and Talluri are considering filing an appeal against this verdict.

Except Ramalinga Raju’s another brother B Suryanarayana Raju and former internal chief auditor V S Prabhakar Gupta, all the other eight accused were found guilty under IPC sections 467, 468, 471 and 477A, relating to forgery of security, forgery for purpose of cheating and falsification of accounts, according to V Chandrashekhar, Superintendent of Police, CBI Hyderabad Zone.

While the Satyam Computer Services Ltd  accounting fraud was to the tune of Rs 7,000 crore, it had caused an estimated notional loss of Rs 14,000 crore to investors and unlawful gains of Rs 1900 crore to Raju and others – scam had caused an estimated notional loss of Rs 14,000 crore to investors and unlawful gains of Rs 1900 crore to Raju and others, said CBI.

Ramalinga Raju and his brother and Satyam’s former Managing Director B Rama Raju were also found guilty under section 409 of IPC relating to criminal breach of trust.

All the ten accused were present in the court, where media was not allowed, when the verdict was pronounced.

After pronouncing the order, the judge directed the CBI to take all the accused into custody.

Satyam Computer scam had come to light on January 7, 2009, after the firm’s founder and then Chairman Ramalinga Raju allegedly confessed to manipulating his company’s account books and inflating profits over many years.

Ramalinga Raju was arrested by Andhra Pradesh Police’s Crime Investigation Department two days later after he allegedly confessed to the fraud, along with his brother Rama Raju and others.

Around 3,000 documents were marked and 226 witnesses examined during the trial that began nearly six years back.

Besides Ramalinga Raju, the others accused are – B Rama Raju, former Chief Financial Officer Vadlamani Srinivas, former PwC auditors Subramani Gopalakrishnan and T Srinivas, Suryanarayana Raju, former employees G Ramakrishna, D Venkatpathi Raju and Ch Srisailam and Satyam’s former internal chief auditor V S Prabhakar Gupta.

Satyam was purchased by Mahindra & Mahindra owned company Tech Mahindra in April, 2009.

For Updates Check Companies News; follow us on Facebook and Twitter 

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition