'India's Enron' fraud trial to conclude next month

Jun 26, 2014

A judge trying 10 people over one of India's biggest ever corporate fraud scandals at IT group Satyam is to reach a verdict at the end of next month, a report said Thursday.

The former chairman of the outsourcing giant, B. Ramalinga Raju, and other executives including his brother have been on trial since 2010 for conspiracy, cheating and forgery.

The scandal at the Hyderabad-based firm is known as "India's Enron" after the US energy giant that collapsed in 2001 in the wake of massive false-accounting revelations.

Raju admitted in a letter of confession in 2009—since retracted—that he had overstated profits for years and inflated the company's balance sheet by more than $1 billion.

The judge has set July 28 for the verdicts in the case, the Press Trust of India (PTI) reported on Thursday citing special public prosecutor K. Venu Madhav.

Raju who was educated in India and the United States, was one of the stars of India's software boom that has been a key driver of India's economic growth over the previous decade.

Tech Mahindra, a unit of Indian vehicle and farm equipment manufacturer Mahindra and Mahindra, bought Hyderabad-based Satyam in April 2009, saving it from collapse.

Raju has been out on bail since November 2011 after spending nearly three years behind bars during the trial.

Prosectors say the fraud caused a loss of 140 billion rupees ($2.3 billion) to Satyam shareholders, while the defence says the accused were not responsible for any wrongdoing and all the documents filed by investigators were fabricated, PTI reported.

Explore further: Amazon as an adult: Two decades of online shopping

Related Stories

India court bails Satyam fraud accused

Nov 04, 2011

India's Supreme Court on Friday granted bail to the former chairman of Indian outsourcing giant Satyam, B. Ramalinga Raju, who is accused of one of the country's biggest corporate frauds.

India's Satyam quarterly profit jumps 56%

Aug 02, 2012

Indian software outsourcer Mahindra Satyam on Thursday said its quarterly net profit rose 56 percent year-on-year, beating forecasts as orders climbed.

India's Mahindra Satyam posts strong profit growth

Feb 01, 2012

India's software outsourcer Mahindra Satyam on Wednesday posted a near five-fold jump in its third quarter net profit, beating market forecasts, as margins were boosted by a fall in the rupee.

Recommended for you

Amazon pushes Prime service with day of deals

8 hours ago

Amazon is trying to lure more subscribers to its $99 Prime loyalty program by pushing a day of discounts it calls "Prime Day" during the sleepier summer shopping season.

Mexico City proposes regulations for Uber

Jul 04, 2015

Mexico City is proposing regulations that would allow Uber and other smartphone-based ride-sharing apps to operate, while requiring drivers and cars to be registered, the city's Office of Legal and Legislative Studies said ...

Shyp reclassifies contract couriers as employees

Jul 03, 2015

Shyp, the quickly growing startup that provides on-demand courier services, said Wednesday it would reclassify its contract workers as employees, becoming the latest high-profile tech company to change how it compensates ...

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.