Satyam Computer chairman B Ramalinga Raju can face seven years’ imprisonment in addition to monetary penalties for forging accounts, breach of trust and misappropriating funds.
“He (Raju) can be charged under various sections of the Indian Penal Code for falsification of accounts, cheating and breach of trust. These offences attract a maximum penalty of seven years,” said a senior partner of law firm Titus and Company, Diljeet Titus.
However, with reports published on leading business daily – As per US Laws, Raju can get 24 years jail term and penalties worth billions of dollars.
Expressing a similar opinion, senior Supreme Court advocate C A Sundaram said, “If the admissions (made by Raju in his resignation letter) are true, it is a very serious matter. It would be violation of (the) SEBI (code), Company Law and the IPC.”
Satyam Computer chairman Raju, in his resignation letter to the board, has admitted falsifying accounts and under-stating liabilities.
Another senior advocate and corporate law practitioner U K Chaudhary said the Satyam chief could be imprisoned for seven years under various provisions of company law. “Under section 628 of the Companies Act, which deals with misrepresentation of accounts, he could be punished for a maximum of 2 years along with penalty. However, the punishment term could be extended to seven years for producing false affidavits and other documents,” he said.
In addition to Raju, Titus said “action should also be taken against chief financial officers, finance managers, and legal and tax advisors for their complicity in this episode”.
Suggesting that the CBI should get into the case, he said if appropriate action is not taken, the Satyam fiasco would ‘make a mockery of the Indian enforcement mechanism’.
Long back indian enforcement system has become a mockery of itself.Prior to the fist stock market scam upteen no of firms were permitted to raise money through public issues and many of them disappeared.What happend to the investers no one bothered. What enforcement was ensured? Only by just getting 7 year Jail Term he should not be let off easily, Who will heal the wounds of millions of Investors & Employees who had vested their hard earned money into Satyam.
If Mr.Ramalinga raju was able syphon off 7000 crores over period of time, why the chartered accounts who audited their accounts have not detected the fraud. Simply by certifying “the accounts are maintained to the best of our Knowledge”is not adequate.Corporate governance,the enforcing agencies should get prior knowledge of such scams.These scams will always give advance information in some form or other before any catostrophic failure takes place.
Hope they have some good leaders at top else the employee morale can take a nosedive.
The Satyam episode is a good warning signal for all managements, and one of the strongest votaries of corporate governance in the country. It is time for authorities to step in with appropriate action & deal with strong actions.The enforcincing agencies have to be more vigilant.
A sad series of unfortunate events powered by greed! The entire foundation of Satyam was built on lies, forgery, scams, lust for power & greed after profits. A handful of businessmen take undue advantage of bright minds of India to make millions if not billions through hook or crook.Today is really a gloomy day in Indian Corporate Industries.