Satyam Computer’s founder Ramalinga Raju confessed to India’s largest accounting fraud of at least Rs 7,136 crore, a special CBI court in Hyderabad on Thursday convicted him and nine others as guilty and sentenced them to seven years of rigorous imprisonment.
The court has also imposed a penalty of Rs 5 crore each on Raju and his younger brother Rama Raju, while imposing Rs 25 lakh each penalty on eight other accused.
The special court of CBI headed by additional chief metropolitan magistrate BVLN Chakravarthi, at a largely crowded court hall, has pronounced the judgement in the accounting fraud which is touted as ‘India’s Enron’ after rigorous trail that lasted 50 months.
Satyam’s founder had confessed to the Rs 7,136 crore of fraud on January 7, 2009, sparking a series of events that led to his prosecution and the company’s takeover by Tech MahindraBSE -0.30 %. Raju and associates were arrested within weeks from admitting to the fraud and spent over 30 months in judicial custody at Hyderabad’s Chanchalguda central prison before they obtained bail in last quarter of 2011. All the accused had obtained bail and have been appearing before the trial court for the la ..
The court convicted Raju and nine others of criminal conspiracy and fraud.