Satyam's Raju admits to fraud and resigns

07 January 2009

In a shocking development, the chairman and managing director of Satyam Computer Services have tendered their resignations. In separate notices to the BSE, Ramalinga Raju, founder-chairman and his son Rama Raju, co-founder and CEO, said they have tendered their resignations.

In a highly emotional communiqué, addressed to the board of directors, copies of which were sent to the stock exchanges, SEBI and senior leaders of the Satyam, chairman B Ramalinga Raju has brought to notice certain facts which 'have been a tremendous burden to his conscience.'

The facts are related to the balance sheet of September 2008.

a) Inflated (non-existent) cash and bank balances of Rs5,040 crore (Rs5,361 crore in the books);

b) An accrued interest of Rs376 crore which is non-existent;

c) An understated liability of Rs1,230 crore on account of funds arranged by Raju; and