What action can be taken against Satyam’s Raju?
What action can be taken against Raju and other board members, the auditors and the bankers for having failed in their basic duties?
It’s not a failure, but purposeful cheating. Thereby, it is a criminal breach of trust, which can attract punishment under the Indian Penal Code (IPC).
From the information available in the public domain, it appears that various offences have been committed, including the criminal breach of trust, cheating, forgery, falsifying records, criminal conspiracy and abetment.
Section 405 defines the offences of criminal breach of trust that is punishable under Section 406 IPC, with imprisonment of either description for a term which may extend to three years, or with fine, or with both. Section 420 defines the offence of cheating which is made punishable with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.
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4 Comments
ramki
January 9th, 2009 at 9:21 pm
what is the use of putting raju behind bar.
think of 53000 employees and lakhs of shareholders who lost not less than 50000
per individual
prakash
January 10th, 2009 at 12:44 am
What auditors were doing? were they dreaming while signing the accounts? Why the bankers are keeping mum? Why they are not putting forth the accounts and saying whether the cash in hand was there in the accounts or not? If the cash was siphoned then they must give the dates on which it was done. Where this cash had been used by Raju needs to be found and all his assets,his relatives assets and the assets of all board of directors and there relatives should be attached. A.P. Govt. also has to co operate.
N. Krishnamoorthy
January 10th, 2009 at 1:22 am
It is surprising to note such a BIG fraud in the corporate sector. As an ordinary citizen of INDIA, I feel that there are rules and regulations formed by the company law board to watch the functioning of a public listed limited company.The magnitude of fraud cannot be done by an individual without the knowledge of authorities.Therefore thorough probe is required and severe punishment should be given to all the directors and the officers involved in the scam. If Government do not take immediate action in the matter every individual will think twice to invest in any company and economy of the country will be severly affected. So it is applead through this note that this matter should not be taken lightly by the Govt, so that in future nothing like this comes up.
K.Vidhyasagar
January 12th, 2009 at 10:08 pm
Sir, It’’s disheartening to see one of Inida’’s leading Software firm is falling like this. Its true that Mr.Raju and others should deserve the punishment in the hands of law. But in the same vein, Govt. of India should consider the plight of those 50000 odd employees. Its not 50000 individuals who are going to suffer, its their family who will be suffering. So any decision, which the law is going to take on them, should consider the family of this 50000 people. Also one should not forgot that this kind of huge fraud can not be done by one single person or family. The auditors and financial firms which were part of this scam all through this years should also be punished severely. And finally every shareholder of satyam awaits an answer for their lost money from Govt. of India and SEBI.
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