Satyam founder guilty in India’s biggest corporate fraud case

April 9, 2015, 12:29 PM UTC
Chairman and founder of Satyam Computer
Chairman and founder of Satyam Computer Services Limited, Ramalinga Raju answers questions during the announcement of the Q2 results, 2008-09 at a press conference in Hyderabad on October 17, 2008. Satyam posted 38.8 percent year-over year revenue growth in the second quarter despite a slowdown in key markets. AFP PHOTO / Noah SEELAM (Photo credit should read NOAH SEELAM/AFP/Getty Images)
Photograph by Noah Seelam — AFP/Getty Images

An Indian court on Thursday pronounced the founder of Satyam Computer Services, Ramalinga Raju, guilty of forging documents and falsifying accounts, in the country’s biggest-ever corporate accounting fraud.

A court in Hyderabad — the home city of what was once one of India’s largest IT outsourcing companies — also found guilty Raju’s brother and ex-Satyam managing director, B. Rama Raju, as well as eight other former Satyam executives, special public prosecutor K. Surender said.

The court sentenced Raju to seven years of imprisonment and fined him 2.5 million rupees ($40,180.01), local television reported.

Former founder and chairman Raju in 2009 said Satyam had overstated profits and falsified assets for years, in a fraud later determined to be $1.5 billion in size.

Satyam was sold the same year to Indian software services company Tech Mahindra Ltd with which it later merged.

($1 = 62.2200 Indian rupees)
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