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The Rise & Fall of Satyam Raju!
By: Tupaki Desk | 9 April 2015 3:38 PM GMT
Want to know what's the first business venture of Satyam Founder B Ramalinga Raju? Its a Spinning & Weaving Mill!
B Ramalinga Raju founded Satyam Computers in the year 1987 and it reached to the stage of becoming the Country's 4th largest IT Firm. The Poster Boy of Indian IT Industry rose to fame after he found a solution for Y2K Crisis at the beginning of 20th Century and avoided the crash of computer systems across the world on January 1st, 2000.
The Harvard educated, Mr. Raju encouraged his family members flout two firm Maytas which is just the reverse order of 'Satyam'. Few days before the accounting fraud came to light, He said Satyam had cash balance of Rs 4,000 crore and gone ahead to acquire Maytas firms without taking the share holders into confidence. As there is a firm opposition from the investors, Raju announced reversal of his decision but it was too late by then as the shares recorded a huge drop. On January 9th, 2009, He confessed to have committed an accounting fraud to cover up the losses. He was taken into custody 2 days later and CBI was handedover the case. Satyam Scam has been described as a sophisticated white collar financial fraud committed for personal gains. On April 9th, 2015, Mr.Raju and 9 Other accused were sentensed to 7 years in jail.
B Ramalinga Raju founded Satyam Computers in the year 1987 and it reached to the stage of becoming the Country's 4th largest IT Firm. The Poster Boy of Indian IT Industry rose to fame after he found a solution for Y2K Crisis at the beginning of 20th Century and avoided the crash of computer systems across the world on January 1st, 2000.
The Harvard educated, Mr. Raju encouraged his family members flout two firm Maytas which is just the reverse order of 'Satyam'. Few days before the accounting fraud came to light, He said Satyam had cash balance of Rs 4,000 crore and gone ahead to acquire Maytas firms without taking the share holders into confidence. As there is a firm opposition from the investors, Raju announced reversal of his decision but it was too late by then as the shares recorded a huge drop. On January 9th, 2009, He confessed to have committed an accounting fraud to cover up the losses. He was taken into custody 2 days later and CBI was handedover the case. Satyam Scam has been described as a sophisticated white collar financial fraud committed for personal gains. On April 9th, 2015, Mr.Raju and 9 Other accused were sentensed to 7 years in jail.
