Satyam Scam; Corporate Governance
The Satyam Computer Services scandal took place in 2009 when the company’s then chairman Ramalingam Raju resigned and confessed to have falsified the company accounts to the tine of USD 1.4bn. in February 2009, the Central Bureau of Investigation took charge of the investigation and filed three charge sheets. Later, they were all clubbed into one. The public company was then removed from the Nifty and the Sensex. Its board was removed and the government appointed its own board. Tech Mahindra then bought the company and gave it a new identity, Mahindra Satyam. This company ceased operations in 2013 when it merged into its parent Tech Mahindra. A total of ten people were found guilty and convicted in this accounting fraud. Raju and others were sentenced to 7 years RI. Raju and his brother, one of the other nine accused, were also charged Rs.5.5 crore each.