India's top court cancels bail for IT group's founder

Oct 26, 2010
B. Ramalinga Raju, founder and former chairman of fraud-hit Satyam Computers is escorted from Chenchalguda Jail in Hyderabad in April last year for a court appearance. India's Supreme Court on Tuesday cancelled his bail because of the gravity of the accusations.

India's Supreme Court on Tuesday cancelled bail granted to the founder of IT outsourcing firm Satyam, who is accused of staging the country's biggest corporate fraud.

B. Ramalinga Raju, the former head of Satyam whose declaration that he had falsified profits in January 2009 plunged India's corporate world into turmoil, was ordered to surrender to police by November 8.

The Supreme Court said the gravity of the accusations meant the lower court order of bail "cannot be sustained".

The top court also cancelled bail for four others accused in the case.

Raju and nine others are accused of embezzling around three billion dollars from Satyam, which was one of India's largest outsourcing companies that worked for one-third of the Fortune 500 firms when the scandal erupted.

Raju, who faces a slew of charges including , cheating and forgery, declared in a letter of confession he had overstated profits for years and inflated the company's balance sheet by over one billion dollars.

However, he backed out from the confession letter 18 months later, claiming it was a resignation letter.

Police maintain Raju’s letter was a "voluntary disclosure of fraud".

Raju was given bail on health grounds by a court in the southern city of Hyderabad in August. He has been undergoing treatment for hepatitis at a hospital in the city, where Satyam is based.

India's federal investigating agency, the Central Bureau of Investigation (CBI), argued Raju's bail should be cancelled because he might "influence witnesses" and tamper with evidence.

The also ordered the lower court to complete its trial of Raju by July 31 of next year. The trial is slated to begin on November 2.

Tech Mahindra, a unit of Indian vehicle and farm equipment manufacturer Mahindra and Mahindra, later bought , allaying fears about its survival.

Explore further: Sony's quarterly loss balloons on mobile woes

add to favorites email to friend print save as pdf

Related Stories

India's fraud-hit Satyam seeks delisting from NYSE

Sep 24, 2010

India's fraud-hit software firm Satyam Computers said on Friday it plans to delist from the New York stock exchange as it may not be able to meet the US deadline to file restated financial accounts.

India fraud office to prosecute Satyam founder

Nov 16, 2009

India's fraud office will file charges this month against the founder of outsourcer Satyam after he admitted to falsifying profits in the nation's biggest corporate fraud, a minister said Monday.

India's fraud-hit Satyam posts loss but is on the mend

Sep 29, 2010

India's fraud-hit Satyam announced Wednesday a loss of 27.6 million dollars for the last fiscal year as it reported its first earnings since an accounting scandal pushed the firm to the edge of bankruptcy.

Recommended for you

Sony's quarterly loss balloons on mobile woes

20 hours ago

Sony's losses ballooned to 136 billion yen ($1.2 billion) last quarter as the Japanese electronics and entertainment company's troubled mobile phone division reported huge red ink.

Will Apple Pay be mobile pay's kick-start?

Oct 30, 2014

If anyone can get us to use our smartphones as wallets, it's Apple. That's what experts think about the recent launch of Apple Pay, the first mobile wallet to work on an iPhone.

Google execs discuss regulation, innovation and bobble-heads

Oct 30, 2014

Eric Schmidt and Jonathan Rosenberg help run Google, one of the world's best-known, most successful - and most controversial - companies. They've just published a new book, "How Google Works," a guide to managing what they ...

LinkedIn reports 3Q loss but sales climb

Oct 30, 2014

LinkedIn Corp. posted a third-quarter loss on Thursday, but its results were better than expected as revenue grew sharply, sending shares of the online professional networking service higher in extended trading.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.