Home / Current Affairs / Court sentences Ramalinga Raju to six months imprisonment in Satyam fraud case

Court sentences Ramalinga Raju to six months imprisonment in Satyam fraud case

The Special Economic Offences Wing (EOW) court here on Monday has sentenced the founder of erstwhile Satyam Computer Sciences, Ramalinga Raju and his brother Rama Raju to six months of imprisonment and a fine of Rs 10 lakh each for violation of various provisions of the Companies Act.

The former chief financial officer of Satyam, Vadlamani Srinivas, and former chief executive officer Ram Mynampati were also sentenced to 6 months imprisonment besides a fine of Rs 10 lakh each.

According to Serious Fraud Investigation Office counsel Raghu, the court has also  imposed a fine of Rs 20,000 each on  all former independent directors of Satyam-  Vinod K Dham, Krishna G Palepu, TR Prasad, BS Raju, Mangalam Srinivasan and Mendu Ramamohan Rao.

All the accused were given one month time for appeal against the judgment.

The economic offences wing  had filed a separate case with regard to the Satyam scam.The judgment in another case filed by the Central Bureau of Investigation (CBI) is slated for December 23.  

All together EOW had filed seven cases against Raju and his former colleagues. Of these, they were convicted in six cases and acquitted in one case.    

On the other hand, the CBI charged Raju and former employees of Satyam with offences ranging from falsification of records, cheating, criminal conspiracy, forgery and causing disappearance of evidence. No charges were made against former independent directors of the company.
 
Apart from Raju brothers , those charged by the CBI included Vadlamani Srinivas,  former  PWC auditors S Gopalakrishna and T Srinivas and former employees of the company Suryanarayana Raju, G Ramakrishna, D Venkatapathy Raju  and Ch Srisailam.

The Satyam scam came to light on January 7, 2009 when Ramalinga Raju confessed to a massive accounting fraud in the company.  He stated that the balance sheet of the company consisted non-existent cash and bank balances of Rs 5,040 crore, an accrued interest of Rs 376 crore which was also non-existent, an understated liability of Rs 1,230 crore and an over stated debtors position of Rs 490 crore (as against Rs 2,651 reflected in the books).     

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