B Ramalinga Raju of Satyam Computers Jailed for Fraud

B Ramalinga Raju, who founded Satyam Computers, denied charges of conspiracy, cheating and forgery but admitted to accounting malpractices. He was also was also fined $800,000.

The collapse of Satyam Computers in 2009 cost shareholders more than $2bn and rocked India’s IT industry.

Satyam had been one of the biggest players in the booming Indian IT software market, supplying back-office services to firms from around the world, including General Electric and Qantas Airways. The jobs of 50,000 Satyam workers were only saved after the government intervened. Another Indian firm, Tech Mahindra, bought a controlling stake in the company in April 2009.

“All the accused have been convicted of almost all charges,” prosecutor K Surender, told reporters outside court.

The convicted men, which include two brothers of Raju, are expected to appeal. The maximum sentence Raju faced was life in jail.