What exactly happened in Satyam case?
Ramalinga Raju confessed that he had manipulated accounts and the amount involved was Rs. 7,000 crores. Further, the World Bank barred Satyam from doing business with it for eight years due to data theft and paying bribes to its staff. This is how Satyam got caught.
What were the consequences of the Satyam scandal?
CBI special court found B. Ramalinga Raju, founder and CEO of Satyam Computers along with nine others guilty of criminal conspiracy and cheating among other offenses and awarded 7 years imprisonment. The trial Court also imposed a fine of 5.5 crores on B. Ramalinga Raju and his brother Rama Raju.
How did Satyam get caught?
The swindle was discovered in late 2008 when the Hyderabad property market collapsed, leaving a trail back to Satyam. The scandal was brought to light in 2009 when chairman Byrraju Ramalinga Raju confessed that the company’s accounts had been falsified.
What happened to Satyam employees?
During the period FY’08-09 and FY’09-10, the co’s employees’ strength changed from 44,000 to 27,000,according to Chairman Vineet Nayyar. HYDERABAD: IT firm Mahindra Satyam (formerly Satyam Computer Services) today said as many as 17,000 employees left the company in the last two fiscals.
Who was the whistleblower in Satyam case?
India became familiar with the idea of whistleblowing thanks to the 14,000 crore Satyam scam in 2009, when India’s metro-man E Sreedharan, alerted the then-Planning Commission deputy Montek Singh Ahluwalia, landing B Ramalinga Raju in jail.
What are the ethical issues involved in Satyam crisis?
The Satyam scam had been the example for following “poor” Corporate Governance practices. It had failed to show good relation with the shareholders and employees. Corporate Governance issue at Satyam arose because of non-fulfillment of obligation of the company towards the various stakeholders.
How was Satyam saved?
Tech Mahindra Ltd. outbid W.L. Ross & Co., the U.S. private-equity firm headed by billionaire investor Wilbur Ross, and Larsen & Toubro, an Indian engineering and construction conglomerate, to win a 31% stake in Satyam valued at $351 million. It will purchase an additional 20% soon at the same price per share.