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Raju’s departure was followed by the resignation of Srinivas Vadlamani, Satyam’s Main financial officer, and also the appointment of Ram Mynampati as the interim CEO. Inside a push convention held in Hyderabad on January eight, Mynampati instructed reporters that the company’s hard cash position was “not encouraging” and that “our only purpose presently is to make certain the business proceeds.” Every day later, media reviews observed that Raju and his brother Rama (also a Satyam co-founder) were arrested — and The federal government of India disbanded Satyam’s board. Although Charge of the business will move into the arms of a completely new board, the government stopped wanting a bailout — it has not presented Satyam any money. In the meantime, a team of auditors through the Securities and Trade Board of India (SEBI), which regulates Indian general public businesses, has started an investigation into your fraud. Due to the fact Satyam’s stocks or American Depository Receipts (ADRs) are stated around the Bombay Inventory Trade along with the The big apple Stock Exchange, Intercontinental regulators could swing into motion whenever they imagine U.S. guidelines have been damaged.
When terrorists attacked Mumbai last November, the media referred to as it “India’s 9/11.” That tragedy has become succeeded by An additional that's been dubbed “India’s Enron.” In among the list of the most significant frauds in India’s company background, B. Ramalinga Raju, founder and CEO of Satyam Pcs, India’s fourth-biggest IT expert services company, announced on January 7 that his corporation had been falsifying its accounts For a long time, overstating revenues and inflating revenue by $one billion.
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