It was the biggest Fraud in the nation and also in the corporate world. It is hard to believe that one of the largest IT companies, Satyam Computer Systems, underwent such a huge fraud case. Two brothers, Mr. Raju and B. Ramalinga Raju, who were the founder of Satyam Computer Systems were arrested for further investigation in the Satyam fraud case. The chief financial officer, Srinivas Vadlamani, may join the two brothers in jail because he resigned just after B. Ramalinga Raju resigned after the fraud case. The two brothers have been charged for cheating, criminal breach of trust and forgery.
The Satyam Computer Systems is considered to be one of the leading outsourcing companies in India and it was among the top five IT companies in India. The company employs about 53,000 people and now the faith of these people is critical. And also many new engineers and technicians were recruited recently from colleges and universities in campus interview. It is doubtful whether the Satyam Computer Systems will be able to send the joining letters to all these new recruits.
The Rs. 7,100 crore fraud case of Satyam will give awareness to all the companies that there must be transparency in all the aspects within the companies. There has been a talk that some leaders of IT companies like Azim Premji will takeover the control of the company but it has not been finalized yet.
If you just want to know more on how Ramalinga Raju started losing his attention from the company, then I can relate some more information about the background of the fraud case. Well, the two sons of Raju are investing in the real estate business and recently their real estate business was not in good shape. So, Raju started using the manpower and other resources for the Satyam Company for the welfare of his sons’ real estate business. Now the four main shareholders of Satyam Company were horrified by the changing behavior of Raju and they want the attention of Raju in his company. As a result of this, the company has some setback in the IT and outsourcing field as their main concentration slightly goes to the real estate business of Raju’s sons.
Now Ram Mynampati is the interim CEO of Satyam Computer System and he is doubtful whether the company has enough funds for paying salaries to its associates for January. This is the biggest fraud case in the history of IT companies and Ram Mynampati is in a very critical situation handling the sinking company.