Indian court finds founder of Indian outsourcing giant, 9 others guilty of stealing millions
An Indian court on Thursday convicted the founder of an outsourcing giant Satyam and nine others on charges of stealing millions of dollars in one of the largest frauds in the country’s corporate history.
Ramalinga Raju, his two brothers and seven other officials of Satyam Computer Services face life imprisonment. Judge B.V.L.N. Chakravarthy said he would sentence them on Friday.
They were also found guilty of using forged documents, falsifying accounts and concealing evidence.
Federal investigators said the fraud by Raju and the others cost the company’s shareholders 140 billion rupees ($2.28 billion).
Raju and other suspects were arrested in 2009, but released on bail subsequently while they awaited trial.
Satyam — which means “truth” in Sanskrit — was once India’s fourth-largest software services company, counting a third of Fortune 500 companies and the U.S. government among its clients. It plunged into turmoil after Raju confessed in 2009 that he vastly inflated the company’s assets by exaggerating cash balances, booking fake interest, and misstating both debt and liabilities.
Tech Mahindra, a unit of the Mahindra Group, bought a majority stake in the company for $351 million and changed its name Mahindra Satyam in 2010.
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