Ramalinga Raju Admits 7000 Crore Fraud

Satyam Which has been in troubled waters for sometime now suffered the worst blow any company could  get when its chief ramalinga raju confessed that all these years the accounts shared with the share holders and  investors were inflated . Its clear now that  maytas Deal was a cover up used for filling  the gap between the balance sheets and the actual money that was available with the company .

It actually comes as an  absolute shocker that a company as big as satyam which is even listed in New York stock exchange could come under the scanner for a fraud of such a huge sum . ofcourse , thousands employees who make the company aren’t responsible but ultimately its the brand name SATYAM that takes the toll . And the investors and the employees are the ones who suffer in turn .

This news , yesterday, spread like a wild fire and the investors reacted within no time to take out the money . The company  shares had a free fall from a value of  170 to mid 30s , almost77  percent down . This is  expected to go further  down .Somewhere i even read that the shares could touch a value as low as zero .

The repercussions of this whole event Could be huge . Indian market which is already reeling under the effects global recession is gonna get severe blow even though they are going to remove Satyam stocks from NIfty. This Could shoo away lots  of NRI and foreign investors who have been the main reason behind the massive IT development in the last few years. Think about the 50k employees of the company.They are no more secure. and finding a job is difficult these days even for the experienced lot .

And there are around 8ooo freshers (2008 passouts)Who have been recruited by satyam and almst 80 percent of them are yet to join . Being a fresher myself i know how it would feel . Many of them had taken huge loans an the  only way replay was to join Satyam . And now under all these circumstances , chances of them getting joining are very less . And the job market isnt helping either.

After all this when the main culprit ,who is responsible for all this , will be given a punishment he will be out again in bail.I think Its high time that we have stricter  laws for dealing with these kinds of cases . He has played with  thousands of peoples life .

17 responses to “Ramalinga Raju Admits 7000 Crore Fraud

  1. laws are always strict and always present… what we need is stricter action on these real culprits..

    this is democracy & we as citizens can do a lot in contributing to that.. like what happened in maharashtra after the terrorist attacks. the CM had to resign due to the pressure created by the citizens as he is answerable to us.

    so keeping up with that the indians should not go back to their dormant mundane life & unite to see that Mr. Raju and his associates in crime are punished for what they did.

  2. one more blow to the budding IT professionals ….. don’t know what’s next… 😦

  3. well laws will be laws…meant to be broken..

  4. What do you mean by strict rules…??
    Do you think… hanging the guilty or may be soem other brutal punsihment could stop people from doing such frauds??

  5. Think about this Arvind….one person 7K cr?!? Gimme a break! It definitely is not a one person scam. He is just taking responsibility. Not saying he is not guilty; just that he is one of many. Should wait for the entire story to unravel.
    The laws are in place. Kinda helpless situation out here now.
    A well written post otherwise 🙂

  6. Time is God

  7. Ahhh, Brillaint we are no more a third world country, We have enron, too. I am not much worried about the Satyam as it will fade away soon. The Idea is to now see what happens to PWC, its fucked. The Auditors getting Audited.

  8. It’s probably a bit too early to start speculating. And in my understanding Satyam being his brain child, Raju has taken just responsibility of the fall.

    Relating this to Enron is naivety! For Chris sake, he’s had no personal gain in all this. The fall was majorly caused due to mismanagement at some level and this is yet to come to light.

    I empathise with you when you talk of freshers losing[?] their jobs et al. But let’s get to reality.None of our jobs are secure either! We’re all riding horses trained by different men and you just can’t pull the rein and say ‘STOP’!

  9. Saddening 😦 I pity the employees 😦

  10. I feel really bad for freshers. In fact, I wrote a post on corporate malfeasance. Unethical practices in the corporate world will not disappear, sadly, from all the examples.

  11. Heard the share value was less than Rs 10 today.

  12. Its not only with the 8000 freshers, but also the 51, 000 employees who are already with Satyam. Their job is also at stake. and like you mentioned, the current job scenario is pathetic. India is once again going to face severe unemployment issues !

  13. If you read ” SATYAM” in reverse you’ll get “MAYTAS” ofcourse a fraud by itself.

  14. Greed at its height!! It just came out today that all the Satyam employees will not be getting their salaries for the next 2 months… Very sad!!

  15. I agree with Apar. Can’t believe one person can do it. Wait for a while, lots of stories will come out in the open.

  16. Мог бы долго с вами спорить на эту тему 🙂

  17. I think a lot of people are involved. You can’t pull something this big without connections!

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