Satyam founder B. Ramalinga Raju manipulated accounts to make the company look good and let the promoters sell their shares at huge premiums, the Serious Frauds Investigation Office said.
Between April 2000, when software companies made a fortune from the Y2K solution business, and January 2009, Raju and his relatives sold almost 3.9 crore shares and pocketed Rs 3,029.67 crore, the agency said in its report to the government.
During this period, Raju sold 98 lakh shares, raking in Rs 773.42 crore, while his brother and former managing director Rama Raju sold 1.1 crore shares for Rs 894.32 crore, said the SFIO.
Satyam promoters spent huge amounts on brand building and inflated the books with fictitious profit and non-existent debtors. This pushed up share prices and misled the investors and shareholders regarding the company?s worth.
Source: The Telegraph
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