Article by Hiral Vilas
In Rs 1849 crore scam by Satyam Computer’s founder B Ramalinga Raju was barred by SEBI, after a probe lasting for more than 5 years for illegitimate gains with interest. In this scam Raju and 4 others were facing the prohibitory orders include Raju’s brother B Rama Raju (then Managing Director of Satyam), Vadlamani Srinivas (ex-CFO), G Ramakrishna (ex-vice president) and VS Prabhakara Gupta (Ex-Head of Internal Audit).
Scam came out when Raju himself wrote letter about the scam. All he money needs to be deposited with Sebi within 45 days, while interest would be levied at 12% per annum with effect from January 7, 2009.
SEBI in its 65-page order, effective immediately, said these five persons “have committed a sophisticated financial fraud with pre plan and deliberate design for personal gains and to the detriment of the company and investors in its securities”.”
The regulator, which has exercised the powers given to it through promulgation of an ordinance for passing disgorgement orders. SEBI further said that the ” at large financial fraudsof this nature are harmful to interests of the investors in securities and endanger the market integrity”.
