Citizens' Issues
Satyam case: Ramalinga Raju, nine others get seven years jail
The court also imposed a fine of Rs.5 crore on Ramalinga Raju


A special CBI court on Thursday sentenced B. Ramalinga Raju, his two brothers and seven others to seven years in prison in the multi-crore-rupee Satyam case.
The court also imposed over Rs.5 crore fine each on Ramalinga Raju, the Satyam Computer Services Ltd's founder and former chairman, and his brother B. Rama Raju and up to Rs.50 lakh each on the remaining accused, CBI counsel K. Surender said.
"Various sentences ranging from two years to seven years imposed on all the accused but all the sentences would run concurrently. That is the reason the maximum sentence is seven years which they have to serve," he said.
The other accused are Ramalinga Raju's another brother, B. Suryanarayana Raju, Satyam's former chief financial officer Vadlamani Srinivas, former PricewaterhouseCoopers auditors Subramani Gopalakrishnan and T. Srinivas, former employees G. Ramakrishna, D. Venkatpathi Raju and Ch. Srisailam, and Satyam's former internal chief auditor V.S. Prabhakar Gupta.


Police were making arrangements for all the convicts to serve their sentences in Cherlapally Jail here.
Special Judge B.V.L.N. Chakravarthi of the Central Bureau of Investigation (CBI) court announced the quantum of punishment in the afternoon, hours after pronouncing all the accused guilty on various counts.
The much-awaited judgement in the packed court hall came in the presence of Ramalinga Raju and all the other accused.
The judge did not take into account the plea by the convicts for leniency in the punishment on grounds of their age, health and the problems faced by their families.
The accused told the judge that they have already spent more than two years in jail.
Ramalinga Raju, the main accused, also sought leniency on the ground of social service he had done in the past.
"They told the honourable judge that they and their families have faced a lot of hardships due to the case. They also brought to his notice that there was no loss to people (due to the fraud)," said Venkateswara Rao, one of the defence lawyers.
The CBI, however, sought maximum punishment, citing it as the biggest corporate fraud in the country and also on the ground of huge losses caused to the investors.
The scam came to light on January 7, 2009 when Ramalinga Raju confessed that the company's account books and profits were inflated over many years to the tune of several crores of rupees.
Police arrested him two days later on a complaint by some shareholders.
The CBI, which took up investigation in February 2009, put the loss to the shareholders at Rs.14,000 crore.
The investigating agency also charged Raju with gaining Rs.2,500 crore by selling his family shares in Satyam.
Raju was charged with floating several front companies to buy land with the scam money. He was arrested by Andhra Pradesh Police on January 9, 2009.
The CBI filed three chargesheets against Raju and the other accused, charging them with cheating, criminal conspiracy, forgery, falsification of accounts and breach of trust.
The disgraced IT czar, who even shared the dais with then US president Bill Clinton during the latter's visit to Hyderabad, spent nearly 32 months in jail.
Raju, who was released on bail in 2011, later retracted his confession and contended that all the charges levelled against him were false.
After the scam, Tech Mahindra took over Satyam Computers in a government-sponsored auction. Mahindra Satyam later merged with Tech Mahindra.
An economic offences court on December 8 last year sentenced Ramalinga Raju and three others to six months imprisonment in six of the seven cases filed by the Serious Fraud Investigation Office (SFIO).



shanti Patel

2 years ago

Congratulation to C.B.I.,the agency doing a very good job in-spite of pressure from certain section of the government.

The sad aspect is that they got sentence of 7 years and fine of Rs.25 lakhs. Is it justified?
Our laws require to be changed and punishment should be enhanced so that in future such people do not venture in to such manipulation.

Two auditors from BIG FOUR also sentenced to 7 years jail. One of them was a CHAIRMAN of the DISCIPLINARY COMMITTEE of THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA!

Unless the laws are changed as time changes, GREED for MONEY and BIG FRAUDS continue.

It least Companies Act 1913 has incorporated various strict provisions for People in charge of managing the companies and auditors

Secretary-Bombay Shareholders Association

SC dismisses 1993 Mumbai serial blast mastermind's plea

Yaqub Abdul Razak Memon's plea seeking recall of apex court verdict upholding his death sentence was dismissed


The Supreme Court on Thursday dismissed 1993 Mumbai serial bomb blast mastermind Yaqub Abdul Razak Memon's plea seeking recall of apex court verdict upholding his death sentence.


Bank Nifty weak, Nifty, Sensex still going strong – Wednesday closing report

Nifty will turn weak below 8,650. Bank Nifty has to close above 18,600 for it to regain upward momentum


We mentioned in Tuesday’s closing report that NSE’s CNX Nifty may continue to make gains, especially if it stays above 8,600. The benchmark opened Wednesday in the green and managed to move higher.
The S&P BSE Sensex opened at 28,601 while Nifty opened at 8,699. Sensex moved from the low of 28,567 to 28,763 while Nifty moved from 8,680 to 8,731. Sensex closed at 28,708 (up 191 points or 0.67%) and Nifty closed at 8,714 (up 54 points or 0.62%). A day after the Reserve Bank of India (RBI) monetary policy, the Bank Nifty continued to remain weak. Bank Nifty opened at 18,560 and moved from the high of 18,596 to the low of 18,382 and closed at 18,417 (down 53 points or 0.29%). NSE recorded a volume of 105.22 crore shares. India VIX rose 0.68% to close at 14.3475.
The Union Cabinet chaired by the Prime Minister, Narendra Modi on Tuesday gave its approval to amendments to the Real Estate (Regulation and Development) Bill, 2013 pending in the Rajya Sabha, and approved amendments proposed in the Bill. 
Market regulator SEBI said it expects the proposed merger of commodities regulator FMC with it to be completed in 6-12 months.
In other news, about 30 crore landless people will get employment in the industrial corridors following amendments to the land acquisition bill, Finance Minister Arun Jaitley said on Wednesday.
The RBI had instructed banks to restructure loans of farmers whose crops have been damaged by the recent unseasonal rains and hailstorms. Prime Minister Narendra Modi today announced higher compensation for farmers whose crop has been damaged by unseasonal rains.
India will be at forefront of strong investment flows into emerging Asian economies in next few years and more individual Indian investors will approach capital markets for financial advice, International Council of Securities Association (ICSA) chairman Ian C W Russell said.
The government has allowed pharmaceutical companies to hike rates of 509 essential medicines used for treating various ailments like diabetes, hepatitis and cancer by 3.84% with effect from 1st April.
Coming back to the Indian stock market, Bhushan Steel (12.87%) was the top gainer in ‘A’ group on the BSE, while PMC Fincorp (9.56%) was the top loser in the group.
State-run Coal India (5.73%) was the top gainer in Sensex 30 pack. The ministry has allowed CIL to revert to the old system, removing the cap on e-auction volumes, with effect from April 2015. HDFC (2.22%) was the top loser in the Sensex 30 stock.
US indices closed Tuesday in the negative. 
The Federal Reserve should be “extraordinarily patient” and hold off on raising interest rates until the second half of 2016, Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said yesterday.
Asian indices showed mixed performance. Hang Seng (3.80%) was the top gainer while Taiwan Weighted (0.73%) was the top loser.
Japan posted its biggest current account surplus of Y1.44 trillion in almost three and a half years in February, the finance ministry said today.
The Bank of Japan today kept monetary policy steady. European indices were showing mixed trading, while US Futures were trading marginally in the green.


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