B Ramalinga Raju, the former chairman of Satyam Computer Services who had had the privilege of meeting Bill Clinton, the then US President, during his visit to India in 2000, will now have to share a prison cell as a convict in India’s biggest corporate fraud.
Raju was sentenced to seven years’ rigorous imprisonment by a special court here today for the multi-crore accounting fraud at Satyam, the company he founded.
The detention undergone by the convicts during the probe and the trial shall be set off against the imprisonment.Raju spent over 30 months in the prison during the investigation and trial. He was also hospitalised at Nizam Institute of Medical Sciences (NIMS) for almost one year for treatment of hepatitis-c and heart ailment as an under-trial, so he would have to spend another four years in the prison.
The ASSOCHAM’s reaction came after a CBI special court in Hyderabad sentenced all ten convicts including Satyam chief B Ramalinga Raju to seven years rigorous imprisonment in the multi-crore rupees Satyam accounting fraud case. Special Judge Chakravarthi pronounced his judgement holding Ramalinga Raju and nine others guilty of cheating, forgery and criminal breach of trust.
SCCL, which was listed in New York Stock Exchange, was delisted from the exchange after the Mahindra Group took over the company in 2009.
The Satyam scandal broke out in 2009, when founder-chairman of Satyam Computers Ramalinga Raju confessed that the company’s accounts were tampered with. Raju disclosed a Rs.7,000 crore accounting fraud in the balance sheets.