Date
26 September 2017
Ramalinga Raju has admitted to a massive accounting fraud at what was once India's fourth largest software services firm. Photo: Bloomberg
Ramalinga Raju has admitted to a massive accounting fraud at what was once India's fourth largest software services firm. Photo: Bloomberg

India’s Satyam ex-chief jailed after accounting fraud

B. Ramalinga Raju, the former chairman of Indian software group Satyam Computer Services, was given a six-month jail sentence for his role in a US$1 billion accounting scandal that shook the company five years ago.

In 2009, Raju admitted to overstating revenues at what was at the time India’s fourth largest IT group by sales.

He was sentenced to six months in jail by a court in the southern Indian city of Hyderabad on Monday, along with four other senior executives, including his brother B. Rama Raju, who once held the position of managing director, Financial Times reported.

Analysts were quoted as saying that the relatively lenient jail term fit a wider pattern in which criminal cases involving white collar financial crimes were punished only with brief prison spells or minor fines in the country.

But some observers say further court proceedings relating to the scandal could yet result in a more severe punishment for the former Satyam chairman.

Satyam’s collapse following the accounting scandal pushed regulatory bodies such as the Securities and Exchange Board of India to shake up corporate governance rules.

– Contact us at [email protected]

RA/RC

EJI Weekly Newsletter

Please click here to unsubscribe