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While there was no confirmation from police regarding his whereabouts, police officers said they had no orders yet to arrest him.
Sebi has summoned Raju at his corporate office at 4.30 pm, Raju's lawyer, Bharat Kumar, said. While Kumar said ‘I will be there’, he did not specify whether Raju too would be present in his corporate office to meet the Sebi officials.
A while ago, a Sebi team probing a financial fraud in Satyam Computer reached Ramalinga Raju's house in Hyderabad, but returned as the premises was locked.
The SEBI team had first gone to Satyam office in Hyderabad on Thursday in connection with a probe ordered by the market regulator a day before.
The probe follows Satyam's founder and former Chairman Ramalinga Raju disclosing on Wednesday financial irregularities to the tune of about Rs 7,800 crore at the company, after which he resigned.
Satyam withholds salaries for two months; layoffs feared
Satyam Computer announced holding back employees salaries for two months, even as rumours were rife that the company might lay off close to 15,000 workers in the coming days.
The offices of Satyam Computer were rife today with the talks about forthcoming pink-slips at the company, which needs over Rs 500 crore every month just to meet its staff costs and has admitted that its cash position was not encouraging.
Employees said they have received an e-mail saying the company would hold back salaries for two months and asked staffers to bear with it.
However, the company spokesperson declined knowledge of any such e-mail and the issue would be looked into.
Even as the company spokesperson denied any layoff plans as of now, the rumours put the estimated job cuts at close to 15,000 by the end of this month.
Employees at the company said on condition of anonymity that they were hearing about imminent lay-off of people who were sitting on the bench or were close to completing their assigned projects. Besides, those being retained would be asked to take substantial salary cuts, they added.
At the same time, global HT consultancy firm Hay Group's Practice Leader Mark Thompson said that employees would suffer the most from the fraud.
Global HR consultancy firm HayGroup's Practice Leader Mark Thompson said: "Based on past experience as with Enron, Worldcom and the Mirror Group, it is likely to be the employees who will suffer most from the fraud perpetrated by their bosses."
In early 2000, the collapse of energy trader Enron had left thousands of people out of work, another 8,500 had lost their jobs at accounting firm Arthur Andersen; and Tyco eliminated 15,000 employees in February.
Analysts at technology research firm Forrester said employees and clients would soon desert the company amid competitive wooing by the rivals.
The research firm added that it has already been consulted by over half-a-dozen rivals of Satyam on competitive strategies to be adopted to take over the business from the clients of the beleaguered IT firm.
Satyam on Wednesday made a shocking disclosure of fudging of accounts by its founder Ramalinga Raju, who then quit as Chairman, leaving an uncertain future for the company and its 53,000 employees.
Raju, in a statement on Wednesday, said Satyam's profits had been massively inflated over many years but no other board member was aware of the financial irregularities.
The timing of this news is the most unfortunate part about it given the fragile state of the global economy, Hay Group's Thompson said.
The scandal will damage corporate India's reputation, may have implications for the whole BPO and IT Services sector and would certainly give some ‘hotheads in the US a little more ammunition to use against the logic of outsourcing to India,’ Thompson said.
"However, there will not be a long term impact on the employer-employee relationship. Instead, we may get tied up with a series of reviews into corporate governance and a host of new regulations attempting to prevent this kind of thing from happening again," Thompson added.
Another global staffing services firm Manpower said at this point of time ‘employees should assess their current skill sets and explore the opportunities in sectors showing positive hiring intent like energy, telecom and mining.’
Executive search firm Headhunters India's CEO Krish Lakshmikanth has said the company might lay off over 10,000 employees by the next month as it has little cash to pay salaries.
"It is most likely that Satyam will cut 10,000 jobs next month as the company is left with no cash to pay the salaries. The current fiasco is likely to put pressure on salaries, which may reduce by 10 per cent due to the surplus of about 20,000 people in the jobs market," Lakshmikanth said.
Lakshmikanth said till Tuesday evening there were about 7,800 Satyam employees who had posted their resumes on job sites and by Wednesday afternoon, it rose to 14,000.
Satyam's interim CEO Ram Mynampati on Thursday said the company has taken care of the salary for December, but its liquidity position was not encouraging.
When contacted, IT-BPO employees union UNITES said, "We are in touch with the senior and top-level management of Satyam, all kind of rumours are doing the rounds but we still do not have any clarity on the isuue."
"It is unlikely that there will be any layoffs as the new management is trying to portray that all is well in Satyam. Moreover, this is election year, even if the company do not have money government might chip in to rescue the employees," UNITES General Secretary Karthik Shekhar said.
According to the latest Manpoer Employment Outlook Survey hiring intent in IT & ITeS sector has gone down drastically this quarter, compared to the last quarter, but the space is showing a positive hiring intent, with net employment outlook of 23 per cent for the first quarter of 2009.
"In India IT and ITeS sector has been a low-cost and high -quality player and will surely emerge big again after the crisis," Manpower India added.
Meanwhile, UNITES India, a union of ITeS professionals, has warned that over 50,000 IT professionals in India may lose their jobs over the next six months as the situation in the sector is expected to worsen due to the impact of global meltdown on the export-driven industry.
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Most of the IT companies used scrutinize for the candidates who have put work experiance in Andra pradesh because of fake experiance. even there are so many cases found having fake degree certificates especially in Andra.. Now they have reached hights by publishing fake profit nos and running company. this is shame on Raju's part. he put black mark on indian IT future and also screwd 50K employess and share holders happiness. Atlease now people should think before doing any fake.
the employees have to support the company.but every one has to think every one has there own family and most of the employees who are working have take loans and the banks are not going to leave them if they are not able to pay back.in this situation the government has to support them.
dis so depressing,bt i think satyam employees should support dere company nd followd instructions as given by dere seniors
The contemporary Indians are regrettably money mongers and their integrity is at stake.This is the primary reason for present day ills. Youth must involve in nation building and give impetus and proper direction. Arise,Awake and stop not till the goal is reached.
This is rumor that Satyam staff will not be given salaries for two months . I think NarayanMurhty is circulating this king of rumors .
SEBI should also scrutinise the Balance sheet of HCL TECHNOLOGIES. They are not above suspicion, their management attitute refelcts something is messy within HCL.
I agree with Gpal's comment, it is just matter of time when HCL Tech is also caught, they are Fudging the accounts for so many years and it is a surprise they were not caught till date
Government take-over of this otherwise good company is a totally wrong move.Don't pack this board with directors blessed by Company Law Board.It would be better if the government persuades another IT company to take over by granting tax concessions so that all their overseas contracts and their employees are saved.
It is cheap tactics by Lakshmikanth Headhunter to try to take advantage of the insecurity of the 53k Satyam Guys. When will this vulture attitude die in India?
lets HANG Raju and all the board. A thief who steals from one person goes to jail, some one like him how will make millions suffer should be HANGED.
Whether it is Lehman Brothers, or Bear Sterns, or Merrill Lynch, or Satyam, the victims are always the employees. It is part of the life and nothing could be sone about that rather than symphathizing for them. The smart ones will surely get a job at other places and the rest will face the tune.
Raju will face the consequense one day, employees lose jobs, get salary cuts, all are mundane facts. We need to contemplate on unknown rather ignored facts. What caused this just with in few years of having the dream of becoming super power? First of all, is the dream right one? When we never dreamt of eradicating the poverty, when we never dreamt of telling the truth, when we never dreamt of being honest, when we never dreamt of treating our servants with respect, the list goes on and on, why in the gods name we dreamt of being a super power? Why we always compare ourselves with USA and bench mark. USA is far ahead of us in every aspect both good and bad. We do not need to compete with them. We need to look at ourselves and do the right things. Raju was just like you and me, he never did the right things, all of us did not do the right things. We are just running crazy after becoming rich, famous, egoistic individually and a super power collectively. Finally, I took one step.
one person cannot be gulity. so we all must come together and must think to improve the currnt things....
The very same people who are vilifying Ramalinga Raju are the ones who were praising him when he made them hordes of money as dividends! All these years they enjoyed while Raju and his associates slogged to make SATYAM a great company which it still is. Satyam has immensely talented, well-educated, trained
This is a rare chance to punish a corrupt businessman in India, as they hardly acknowledge their guilt or even feel they are doing anything wrong by cheating people and the counytry. I hope general people will demand accountability from politicians and administration to punish such criminals.
India has reached this stage for people like Linga Raju, who suck blood of others and then want to go scot-free, like majority of Indian "elites", businessmen and industrialist. Raju should be given exemplary punishment, if proven guilty. All businessmen and industrialists who cheat people, its employees and the country should be severely punished. No question of mercy ( in know it’s almost impossible but that’s what needed to make India a better, fair place).
This con should rot in jail instead of being left free....
I cannot believe that people here still support the thief Raju. He has been paying salaries to employees who do not exist and pockets the money to the tune of hundreds of crores each year. He is a crook who should be hanged for ruining so many families. They had invested their hard-earned money in his company which is worthless today.
i believe that Mr Raju is innocent and hiding the political leaders like Naidu and Advani who were very closed to him. Naidu was even took him to meeting with Clinton in USA and lot of deals were fw to Satyam. As Mr Raju has sincierly come out him self as guilty. he should be let free. I think this will save lot of miseary for employees who are not getting two months salary
This is not the first
lets not crucify Raju . he is a victim of mad corporate competition .he has given many professionals real oppertunities to grow and learn .Satyam has fed many mouths , contributed to the economy in a larger way . he is not like an anti social politician we still vote and elecet. let us support Satyam .let the Goverment take the corporate governence until things come back to normalcy.Lets bail out Satyam from this mess for the sake of 53000 employees . Its going to cost much lesser than the security coverages given to the antisocial politicians
It was partly the greed of all the software employees to seek more salaries that would have eventually ended up Satyam with OPM of 3%.. For the salaries that such employees took why should the other lesser salaried class bear the burden of the losses? For such fraud investors like us in the stock market have already burnt our hard earned money.Let the employees who were with the company come ahead and bear some of the losses and be as a model..
Yes. Let us Garland him, honour him, raise his statues. Pour in more of our hard earned crores in Satyam so Raju can give us more shaft and increase his Land bank.God help us with such noviceness.Just because he admitted, makes him no saint. His fraudulant behaviour must be villified and his sorry ass must be put in Jail for maximum term possible under the law.
Dont confront issues with vegence.Its the question of credibility of the whole IT sector . The Goverment should demonstrate to the world that it back up the companies and the clients trust in Indian companies .Its raju who did the fault not Satyam as a whole .They have been delivering to the customers .So looking from a larger perspective lets bail out satyam and tighten the control on the governence .lets not take this issue personal
Bail out Satyam, Raju and his sons and more CEOs will follow the same and who will finally bail out India and and 1 Billion population?
Sure, the law will take that action, if at Laloo law is available in India!But, it's not going to bring the money back!What needs to be done immediately, is to prevent further damage to employees and stake holders!May, India can work to prevent another scam/fraud!Who knows about Satyam (truth) about other big companies!
Really its a bad news for all the employees in Sathyam..
Most of the IT companies used scrutinize for the candidates who have put work experiance in Andra pradesh because of fake experiance. even there are so many cases found having fake degree certificates especially in Andra.. Now they have reached hights by publishing fake profit nos and running company. this is shame on Raju's part. he put black mark on indian IT future and also screwd 50K employess happiness and share holders. Atlease now people should think before doing any fake.I am not understanding what government will do, there also useless polititions will take advantage of this scam by blaming some to get vote.
It is always like that in India. Common people suffer for the mistakes commited by the greedy rich. Raju will be still sipping champagne. while the employees have to think about their next meal. This time too the public should raise a hue and cry as they did after the mumbai terror attack, because this is no less than terrorism. Let all the assets of Raju be sold off to pay the employees. Why should he and his sons enjoy when so many innocent people of their company suffer agony.
Mr Raju, u said u r ready to face the consequences of ur actions, yet the law had to return from ur known address without meeting you. I believe even before u have sent ur email informing the Satyam Board and the SEBI, u have planned ur exit strategy to the last detail and called the IOUs from various Political bosses whom u had greased nicely when the going was good. That explains their muted reaction baying more for the blood of the AP Govt than bringing u to justice. I have no doubt u r still continuing with ur exit strategy and feverishly working on it since wednesday while the 53000 strong Satyam staff are spending sleepless nights worrying endlessly about their future. Mark me, all ur bestlaid plans will not succeed and u would be definitely brought to justice cos ur politician friends wont even touch u with a barge pole once the extent of ur misdeeds come to light in the next few days and the public outcry reaches crescendo.Pls take a leaf out of Hansie Cronje
It's hard to imagine that Satyam staff will not get 2 months salary. Staff, Investors, Bankers, customers and many people will face situation, wrong doing by Raju.
There is no communication to anyone in the company about not paying or holding salaries of the staff. I hope everyone heard what interim CEO mentioned about it in the press conference. Request media and other respectable people of the industry to help the senior management and the company to revive and not to fall. False news are not going help anyone rather hurt the staff and their families sentiments.
Unbelievable indeed! The greed of the corporate has eaten the employees again. Admission of guilt is the first step towards redemption and should not stop there. Employees' wages should be paid out of garnishment of the assets of all involved in this scam. Worst of all, Satyam's image is tainted for good and overseas business will be affected. Right now, pay the employees.