The Hyderabad court on Monday sentenced the Satyam founder B Ramalinga Raju and his brother Rama Raju to six months jail, and a fine of Rs 5 lakh has also been imposed on each of them.
This is in connection to the software scam done by the two in Satyam’s financial fraud.
Known to be as one of the country’s biggest accounting fraud, the scam came to light on January 7, 2009. The charges were proved when Mr Raju confessed to manipulating the company’s account books.
This was done to inflate the profits over many years to make it to several crores.
Crime Investigation Department of Andhra Pradesh Police arrested Mr. Raju two days later. His brother was also arrested along with him.
Unbelievable Indian Judiciary Satyam Scam worth Rs 2000 CR: & Just Rs 10 lakh fine; 6-month jail for founder Ramalinga Raju Now a free man
— Rishi Bagree (@rishibagree) December 8, 2014
Mr Raju the former Satyam chairman was charged with offences like cheating, criminal conspiracy, forgery and breach of trust under relevant sections of IPC (Indian Penal Code) for inflating invoices and incomes, account falsification, faking fixed deposits, besides allegedly falsifying returns through violation of various income tax laws.
Another case regarding the CBI or Central Bureau of Investigation probe in Satyam scam is pending for judgement on December 23.