Court wields the stick of justice; Raju gets 7 yr jail term

Published on April 09, 2015 14:26:27 PM
Business
Satyam founder B Ramalinga Raju and nine others accused of involved in the multi-crore accounting fraud case, were pronounced guilty by a special CBI court in Hyderabad on Thursday.

The court sentenced Raju with seven year-jail term and also imposed a Rs 5 crore fine on him.

The 10 were convicted under various sections of the Indian Penal Code (IPC), including 120B (criminal conspiracy), 409 (criminal breach of trust), 420 (cheating), 467 (forgery of valuable security, will), 468 (forgery for cheating), 471 (using forged documents as genuine) and 477-A (falsification of accounts).

The Satyam scam is considered as one of the biggest corporate accounting fraud in the country, which caused a loss of Rs 14,000 crore to shareholders of the firm, according to CBI.

The scam came to limelight on January 7, 2009 after Raju allegedly confessed to manipulating his company's account books and inflating profits over many years to the tune of crores of rupees.

Other accused in the case are B Rama Raju, company’s former managing director; Vadlamani Srinivas,  former chief financial officer; S Gopalakrishnan and Srinivas Talluri, former Price Waterhouse auditors; B Suryanarayana Raju; and former employees D Venkatpathi Raju, G Ramakrishna, and Ch Srisailam; and Satyam’s former internal chief auditor VS Prabhakar Gupta.