SEBI Orders Six Entities To Return Rs.1,747 Crores Gained Unlawfully In The Satyam Computers Scam
The amount is to be paid within 45 days
SEBI Orders Six Entities To Return Rs.1,747 Crores Gained Unlawfully In The Satyam Computers Scam
The amount is to be paid within 45 days
The Securities and Exchange Board of India (SEBI) has passed another order in a case of fraud involving Satyam Computers Services. It asked six entities to return the unlawful gains of Rs.624 crores along with a 12 percent interest per annum on the amount.
The total amount the entities are required to pay is approximately Rs.1,747.5 crores. This is assuming that it is paid by the January 2024 deadline. This includes a 15-year interest amount of Rs.1,123 crores.
The names of the six entities are B Ramalinga Raju (ex-chairman of Satyam), B Rama Raju (ex-MD), B Suryanrayana Raju (brother of Ramalingam Raju), SRSR Holding Private Limited (promoted by Satyam’s promoters), V Srinivas (ex-CFO), and G Ramkrishna (ex-Vice President - finance).
The SEBI order follows the 2 February 2013 order of the Securities Arbitration Tribunal. The market regulator had passed a disgorgement order earlier as well. It was, however, challenged by the accused in the higher courts, including the SAT and the Supreme Court.
In his order, Ananth Narayan G, the Whole-Time Member of SEBI stated, “I hereby direct that the noticees shall disgorge the unlawful gain made by them calculated in Table No.19 of this order, along with simple interest at the rate of 12 percent per annum from 07 January 2009 till the date of payment. As directed by the SAT vide its 02 February 2023 order, the unlawful gains shall be borne individually.”
The gains, individually calculated, without the applicable interest, are - B Ramalinga Raju - Rs.20.43 crores, B Rama Raju – Rs.20.43 crores, B Suryanrayana Raju – Rs.51.44 crores, SRSR Holding - Rs.518.36 crores, V Srinivas – Rs.9.58 crores, and G Ramkrishna – Rs.3.83 crores.
SEBI remarked that since the others had already served their ban period, only B Ramalinga Raju and B Rama Raju would continue to be barred from dealing in the market till 14 July 2028.