This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7822331.stm
The article has changed 3 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Indian IT scandal boss in custody | Indian IT scandal boss in custody |
| (2 days later) | |
| The founder of scandal-hit Indian software company Satyam is to be held in custody until 23 January, after he admitted falsifying its accounts. | The founder of scandal-hit Indian software company Satyam is to be held in custody until 23 January, after he admitted falsifying its accounts. |
| Ramalinga Raju, who said the firm had exaggerated cash reserves by some $1bn (£661m), and his brother Rama have been charged with criminal conspiracy. | Ramalinga Raju, who said the firm had exaggerated cash reserves by some $1bn (£661m), and his brother Rama have been charged with criminal conspiracy. |
| Police have also detained Vadlamani Srinivas, Satyam's chief financial officer, for questioning. | Police have also detained Vadlamani Srinivas, Satyam's chief financial officer, for questioning. |
| The affair is India's biggest-ever corporate fraud. | The affair is India's biggest-ever corporate fraud. |
| Mr Raju, formerly chairman, and his brother, formerly managing director, have been charged with criminal conspiracy, forgery, criminal breach of trust and falsifying documents, S.K Kumudi, a senior police officer, said. | Mr Raju, formerly chairman, and his brother, formerly managing director, have been charged with criminal conspiracy, forgery, criminal breach of trust and falsifying documents, S.K Kumudi, a senior police officer, said. |
| They could face life in prison, he added. | They could face life in prison, he added. |
| Fighting for life | Fighting for life |
| The company, which employs 53,000 people and brought in about $1.73bn last year, is now fighting for its life. Its clients include Nestle, General Electric and Ford. The Satyam case is an aberration Prem Chand Gupta Corporate Affairs Minister | |
| Satyam is a publicly traded company, but, in exceptional circumstances, the government can step in. | Satyam is a publicly traded company, but, in exceptional circumstances, the government can step in. |
| The government said on Saturday that a new board would meet within seven days. | The government said on Saturday that a new board would meet within seven days. |
| "We are working on the names," Prem Chand Gupta, the Corporate Affairs Minister, told reporters. | "We are working on the names," Prem Chand Gupta, the Corporate Affairs Minister, told reporters. |
| Blight? | Blight? |
| The scandal comes at a tough time for Indian companies, already hit by the global slowdown and faltering growth in India, one of Asia's tiger economies. | The scandal comes at a tough time for Indian companies, already hit by the global slowdown and faltering growth in India, one of Asia's tiger economies. |
| Mr Gupta expressed concern that the affair could blight India's reputation. | Mr Gupta expressed concern that the affair could blight India's reputation. |
| "The Satyam case is an aberration," he said. "The credibility of the Indian corporate sector in general, and IT sector in particular, should not be allowed to suffer because of this." | "The Satyam case is an aberration," he said. "The credibility of the Indian corporate sector in general, and IT sector in particular, should not be allowed to suffer because of this." |
| Satyam's shares fell to 11.50 rupees on Friday, their lowest level since March 1998. Last year they hit a high of 544 rupees. | Satyam's shares fell to 11.50 rupees on Friday, their lowest level since March 1998. Last year they hit a high of 544 rupees. |