Sebi orders Satyam’s Raju, kin to return Rs 3,200 crore
11 September 2015
The Times of India – Pune Edition
Market regulator Sebi on Thursday ordered B Ramalinga Raju and his family, the former promoters of fraud-ridden erstwhile Satyam Computers, to return Rs 1,803 crore of their ill-gotten j money plus interest for over six-and-a-half years, which adds up to about Rs 3,200 crore. t Raju, chairman of Satyam Computers till early 2009, and some of his family members have also been banned from the market for seven years. Thursday’s order was issued as a rejoinder to Sebi’s own order of July 15, 2014. The Raju family had fudged the books at Satyamfor eight years till Raju admitted to the corporate and accounting frauds on January 7, 2009. Subsequent investigations revealed that directors and employees of Satyam, including its chairman, MD and CFO, had since January 2001 “connived and collaborated in overstatements, fabrication, falsification and misrepresentation of books of account and financial statements of Satyam Computers”, the Sebi order said.
The regulator found that the Rajus and their associates fudged the company’s accounts to “paint a rosy picture”, which helped maintain a healthy share price for Satyam. They then used unpublished price-sensitive information to sell those shares at a high price to make profits, Sebi said. Sebi has now ordered the Rajus to disgorge all their ill-gotten profits along with a simple interest at 12% per annum since January 7, 2009 till the day of payment. The regulator also said that since IL&FS Engineering & Construction in its former avatar as Maytas Infra had made unlawful gains, which still remain with the company under the new management, those gains should be returned.