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Tag: Fraud

P.Chidambaram and Ramalinga Raju – two sides of the same coin?

Came across a  pretty interesting piece in the DNA which sought to place the confession by Satyam’s Ramalinga Raju in perspective with statements by P.Chidambaram early last year, while presenting the Budget as the FM at the time.

Raju confessed that he had overstated profits, which is possible either by creating make-believe revenues or by understating costs. Raju did the former. Chidambaram did the latter.

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Ramalinga Raju admits to massive fraud, quits Satyam

Satyam Computer Services was thrown into disarray yesterday as Chairman Ramalinga Raju, in a letter sent to Satyam’s Board as well as the market regulators, admitted to cooking up the books as part of a massive fraud, tentatively pegged at close to Rs.7,000 crore.

Satyam, already reeling under the impact of the aborted Maytas deal and corporate governance issues, had hoped to resolve these problems in its board meeting on January 10. Initially, like many others, I suspected the letter to be a hoax, but as time went by and there was no denial or rebuttal, the harsh reality about one of corporate India’s biggest frauds began to sink in.

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The Satyam – Maytas affair

Satyam Computer Services, India’s 4th biggest software services provider, has been caught with it’s pants down, after it announced plans to acquire Maytas Infra and Maytas Properties for $1.6 bn – 51% in Maytas Infra for $1.3 bn and 100% in Maytas Properties for $300 mn. The key point here being that the money would go to the promoters of these companies, who incidentally, just “happen” to be Satyam Chairman Ramalinga Raju’s sons !!!

Rama Raju is one of the promoters of Maytas Properties, which develops urban infrastructure, whereas B Teja Raju is the vice-chairman of Maytas Infra, a 23-year old listed company engaged in infrastructure construction and asset development.

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