Satyam scam: Ramalinga Raju gets 6 months imprisonment, fined Rs 10 lakhs
Hyderabad: A local court on Monday convicted Satyam's founder B Ramalinga Raju and others accused in connection with complaints filed by Serious Fraud Investigation Office (SFIO), the investigation arm of the Union Corporate Affairs Ministry.
The SFIO had filed seven complaints against erstwhile Satyam Computer Services Limited (SCSL) and its then directors for alleged violations under different sections of the Companies Act in the Special Court for Economic Offences here in December 2009.
Raju and some of the then directors of Satyam Computers, were sentenced to 6 months imprisonment and each of them were fined an amount ranging from Rs 10,000 to Rs 10 lakh while in other complaints only fines were imposed on the accused, even as the court directed to one of the former director Krishna G Palepu to pay an amount of Rs 2.66 crore in complaint number 394/2009 within two months.
“Out of the seven complaints the accused including Raju and others were convicted in six complaints with jail terms and fines while in one complaint where the offence is punishable with fine they were granted acquittal. The sentences will run concurrently,” Company Special Prosecutor C Raghu said.
Raju, former Satyam Managing Director Rama Raju and its ex-Chief Financial Officer Vadlamani Srinivas, former director Ram Mynampati were punished with jail terms and fines while other former directors including Krishna G Palepu, Manglam Srinivas, Vinod K Dham, former cabinet secretary TR Prasad, ex-director of IIT Prof V S Raju and former Dean of ISB Prof Ram Mohan Rao were fined Rs 20,000 each in complaint number 397. Palepu was also fined Rs 2.66 crore in complaint number 394.
SCSL which was named in two of the complaints (394 and 400) had paid the compounding fee earlier and the offences were compounded by Company Law Board, Raghu explained. Similary, Satyam's then company secretary G Jayaraman had also paid the compounding fee.
According to SFIO, during conduct of affairs of the SCSL, the accused did not adhere to the procedures contemplated under provisions of Companies Act and thereby violated the provisions and hence the agency filed seven complaints against them.
The SFIO filed complaint against the accused on various charges including fudging of balance sheets, deceiving shareholders, taking huge benefits and dividends as directors, and showing as paid unpaid dividends.
The defence filed a petition seeking suspension of the court order which was allowed enabling them to file an appeal within 30 days and time was also granted them to pay the fine.
Another case regarding the CBI probe in Satyam scam is pending for judgement on December 23.
