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Raju, who three days ago disclosed a financial fraud in the company running into thousands of crores over several years, and his brother were produced before the 6th Chief Metropolitan Magistrate who remanded them to judicial custody till January 23, their lawyer Bharat Kumar said.
The siblings will be treated as ‘C’ class prisoners vastly different from the luxury of their home in the posh Jubilee Hills and will be treated like other prisoners, jail officials said.
Vadlamani Srinivas, Satyam Computer's Chief Financial Officer, who resigned a day after the fraud came to light and which is yet to be accepted, was first picked up in the evening for questioning and was later formally placed under arrest, IG (CID) V S K Kaumudi said.
Srinivas has been arrested on the same charges that have been slapped on the Raju brothers--criminal conspiracy, cheating, use of forged documents, forgery and criminal breach of trust--under the Indian Penal Code, he said.
In Delhi, SEBI Chairman C B Bhave called on Corporate Affairs Minister Prem Chand Gupta to discuss coordinated action against Satyam - whose profits Raju admitted to inflating over the years - besides nominating new directors to the company's Board.
Gupta apprised Prime Minister Manmohan Singh on the developments. Andhra Pradesh Chief Minister Y S Rajasekhara Reddy too called Singh to update him on the Satyam front, which the government has said dented corporate India's image globally.
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IN REGARD TO CRIMINAL LIABILITIES OF AUDITORS AS IN THE CASE OF ENRON, WHAT IS THE POSITION OF THE AUDITING FIRM THAT HAVE BEEN AUDITING SATYAM FOR THE PAST YEARS?
Let others bark...it was you in the business before and now is the country...No matters what they think, no matter what they say, you keep going but now be truthful and start with a new begining...Its not just me with you but other lakhs of citizens of INDIA too.
Guys, he is not a criminal but a deadly terrorist. The difference is killer terrorists kill people instantly without any pain whereas Raju has destroyed 53,000 employees and n number of share holders who are suffering and dying slowly with pain. Such people such be punished severly.
As usual, we are only scapping the top without ascertaining why and how this fiasco happened. There is a system failure.The fundamentals need to be examined, amongst others, the proceedure of appointment of independent directors, the internal audit reports being given to independent directors, the nexus between the top brass of the corporate and the political class.After Satyam, the auditors of other companies will be rushing to reexamine the records of companies already audited by them. More relevations may be expected.Preventive action is the need of the hour.
WOnder what happened to the auditors of PWC. Definitely they have not adhered to standard Auditing practices. There are atleast two partners of PWC on ICAI central council who should have resigned but have not. How the ICAI can conduct an impartial enquiry as oredered by them on the collusive audit firm.
Mumbai attacks
i think people should accept the braveness of raju, unl;ike cowards like Tata who lost crores in prohects in singur. Wht does investors do not say anything about Tata? See the way bsuiness is done in Reliance? Just because someone has honestly accepted, regulators are jumping on hum. Is there any ethical corporate governance in India? Tell me a company which does that? I pity Raju and support his early release.He has not taken any money from this mis-accounting process. He has spent huge money on various charoity activities like drinking water project etc. Has govt provided any good water schemes in india? Raju should bounce back. Our polutucuans and administrators are making millions and why no media is asking for that? Is oyur media, judiciary and administrators first of all ethical?
ramalinga raju is a good person.he sacrifice his life 2 the satyam . threw out andhrapradesh we hav 108 ambulance ,once think how they are working,saome of the areas are getting water food and shelter ,thse things r done by satyam industry,to appear his company in the top position he shown the profits which are not their in his company thats y he efffected this much
There is a saying for young IAS and IPS officers; It is not question whether they will take bribe or not. It is a question of how long can they resist lure of the first bribe. Same applies for Rich and powerful people; Raju took this "slippery slope" path when he deviated from his (SATYAM-Truth) IT business to Land Business (Opposite of SATYAM-Truth, MAYTAS).To me, it looks like Raju has taken a leaf from YSR's confession of "IDUPULAPAYA ESTATE" scam; if you are powerful and successful, all you have to do is confess and you won’t be penalized for the crime committed.I would have been proud, if Raju has gone 2 steps beyond his simple confession:1. If he had shown courage and let us know his partners in crime.2. If he had volunteered to handover his personal properties (even if it was 25% or 50%). Imagine what would be plight of the common man and law, if everyone who commits the crime takes this simple route of “CONFESS, AND NO PENALTY”.
Like Arthur Anderson has gone with the Enron scandal, PwC must be banned, at least within India, and legal action must be taken against all Satyam auditors too.
I agree that there may be many companies like Satyam there in India. But, when someone is caught, the punishment must be a lesson to others and others must think twice before doing such things in future. In that way, I welcome all actions against Raju and the company (and everyone who benefited from that.)Pride? What pride? Every Indian company will be looked through the tainted Satyam glass, at least for some time.
I believe the root cause of this problem could be the bad investment in the real estate during the boom, which was worse than gambling in Las Vegas the last few years. Time will tell what really happended. The alleged non-existent cash theory may just be a cover up. I am sure an independent board appointed now, can turn this company around to its past glory, but it will take a long time and the pending civil ligitations around the world would hamper this comeback.
Dear Sir,What happened at Satyam is not satya, but one of proud gem company should get its glory back and show the world that under any crisis, India will shine.
they are many scam will come out like satyam in coming year in a year or 2 only poor investors loose their money End of GREAT IT JOBS
This serves the corrupt and fraudulent Indian companies right. I can almost be certain that similar situation exists in Infosys, Patni, TechMahindra and WIPRO etc. These are all apparently, acording to my opinion, corrupt companies involved in accounting, hiring, business process etc. malpractices,nepotism, kickbacks and fraud at various levels of management and not just at the top. Indian businesses reek of corruption like the whole political and social environment there... one faces corruption at every stage of life ..even for the simplest of activity. I hope all US and EU companies immediately cancel ALL their outsourcing and local resource augmentation plans immediately and cancel their visas and send all those people packing back to India. All these people in the last 10 to 15 years have put honest people of Indian origin to shame by bringing their corrupt practices and mean behaviours to US and Europe.
What has happened in Satyam Computors revealsthe tip of the ice berg. In IT Industry, thereare no soilid Materials, WIP. Finished Goods etc unlike other Industries. Every thinfg is i the form of syatems/data in store in the system etc. Even the receivables are not secured. It is time the Govt., of India undertakes an audit of the IT companies If an Company goes for window dressing to boost up their sales and profits one year, it dcannot comeout of theis whirlpool. This is true of any Company. What has happened in Satyam Computors should act as eye opener to others who should take the message seriously.
Very sad day for Satyam. Raju would have committed a fraud. PwC did not detect it. Banks did not detect it. However, none would not have known had he not disclosed it. Instead of restricting his movements, the Govt has humiliated him by arresting him and treating like a criminal. Let me tell you, I have no interest in Satyam. But it is very unfortunate that our criminal and anti-India politicians are roaming around freely while people who created wealth are humiliated.
How innocent of you! The state govt is actually trying to save him from SEBI enquiry. Nobody would have known if he didn't reveal it himself? How naive! Everybody knows it. They all have a role in it. You wait and see.
Dear Mr.KannanYour suggestion to treat Rajus with kid gloves is really surprising. It is the responsibility of the business to disclose the actual state of affairs when public money is involved. This is a cheating of very high order and has to be traeted as such. The auditors, Banks etc. would have to be also taken to task for their collusion/ negligence. What is at stake is the future of about 50,000 employees who have dreams in their eyes for a bright future. Life has turned upside down for them. MAny individual investors have last their hard earned money.The government should act swiftly and strictly so that these sort of scamsters do not flourish.J.KUMAR
how dare they arrested him.he should have been given a bharat ratna.there was some internet campaign to award bharatratna to dhirubhai ambani who would have been the role model for raju and all businessman.hope satyam is just the tip of iceberg and all other middle class darlings follow suit.no one can become rich without cheating whether in politcs or business
Should we believe that auditors have not detected it !!
Yes. These days, the audit profession's role is questionable. I am a CA myself but the professional approach to audit has significantly changed (for worse). Examples galore: Lehmann Brothers, Madoff, UBS etc are there. I first blame my own professional community for the half-baked work that has put several millions of lives at stake. Institutions that survived the Great Depression have collapsed. They "showed" profits just the night before their collapse. One country (Iceland) went bankrupt recently. However, in India, the politicians like Laloo, MK, Pawar etc have made multi billion dollars and have no moral responsibilty to punish Raju who seems to be honest.
Sirs, This is a very very bad thing happened to Indian Marketing and Finance dealings and Software business. It seems it has not happened over night or a single day. It is a continuous affair and default, supported by his Finance department, Legal cell, Audit firms, in addition to the Govt. Officials of various department which interacts with the business affairs to collect various taxes, octrois, duties, etc. like Corporation, Municipalities, Income Tax, Sales Tax, Customs, Foreign Exchange department, Banks, Insurance, Investment Institutions, etc., which seeks for business affirs statements like Profit and loss statements, balance sheets, other securities, etc. in support of the statements. So there is a big hitch. It should be looked into seriously in all angles since many of them might have benefitted in the dealings with Satyam at every stage. Actually I wanted to invest for shares at Rs.140 but when I proceeded , I learnt that it has fallen and in down trend and saved.
I am asking all, is it right to hold the satyam shares or all the money gone ?
Dear Ghosh, To my best guess you better hold the shares. Such a big and reputed company is very unlikely to be closed down. It will take time. So if you can affort to wait better hold.
We should support to bring up the satyam to its glory. Becuase satyam is our proud.
The norms of the Audit Firm is to get a authority letter to Bank from the Authorised Company official. ( This case Satyam ) The request letter is to give year ending balance in all accounts. Then the bank will directly give the original to the Audit Firm. Do PWC has the balance confirmation letters for all these years in their records. If not PWC can be taken into task along with the Directors. Thier Licence of PWC should get cancelled. This is the general norms for all public company. I was working as Bank Manager in India.
it is indeed unfortunate that this scam had to happen at this time when there is a global meltdown and every company in India is trying its level best to hold its head high in turbulent waters. hope this gets over very soon and the said company is allowed to operate on normal terms and conditions so that it can recover from the abyss it has got into to.
It is interesting to see the new developments taking place in Indian Inc. Thanks to the recession. Otherwise these thugs would have keep on cheating the common men forever. Sometime back, a number of readers of IE were abusing all the stinky politicians and arguing that the power of India has to be given to some IT business leaders! Now it is evident that whether its politicians or businessmen, they are the birds of same feather. May great God save India from these evil.
Do not punish Satyam for Rajus wrong doing . We still keep the goverment intach even when a minister is sacked for curruption .Or we sack the whole Goverment ? We even put our country at stake to save a goverment .Sataym has to survive and do business to uphold the credibility of our IT sector and the goverment. Dont take out the anger on Raju to the other stake holders .lets see ways to bail out Satyam out of this mess . We did this for many Banks and other institutions
The Government shall let the investigating Agencies do their job professionally and justice shall be served swiftly on Raju and all those who are found to be colluded with them. The punishment shall be so exemplary that the Rajus in waiting shall reform themselves voluntarily. Justice shall be done to all the investors who have lost life's earnings because of the misdeeds of Rajus. Once the extent of the fraud is established, the Government shall confiscate and dispose off all the moveable, immovable and liquid assets of the Raju clan and distribute among the poor investors, vendors etc. There shall be swift action against Bankers of Satyam, their auditors PWC if it is established that there is either collusion or criminal negligence on their part. Rajus have the temerity to come to the DGP's office in 4 Mercedes Benz cars after bleeding the Satyam to the last paise. For me this particular incident is the singular proof of their guilt. Now, I ask the leaders of my country to act.
the culpability in Satyam case is not limited to the rogue promoter, who went public only when his wrongdoing reached a dead-end. The fraud perpetuated by Ramalinga Raju, over a decade on the gullible Indian is shocking. It is surprising that even though he has been manipulating books of accounts for over a decade, the central government CM has failed to take any action against him and the company. The books of accounts of corporate sectors in India are subjected to scrutiny by the Reserve Bank of India, SEBI, the Statutory audit by Charted Accountants and the balance sheet is scrutinised by the Registrar of Companies under the Companies Act, 1956. If he has been manipulating accounts for over a decade, the scam would not have surfaced without the connivance and conspiracy of government officials and CM If any government officials are found to be involved in the scam, the government should not hesitate to take appropriate action against them too