Satyam Scam in India

The Satyam Scam was a corporate fraud that took place in India in 2009. It was one of the biggest financial scandals in the country's history, and it shook the confidence of investors in the Indian stock market. Satyam Computer Services Limited was one of the largest IT companies in India at the time, and it had a significant presence in the global market.

The scam was masterminded by Satyam's founder and chairman, Ramalinga Raju. He admitted to inflating the company's profits for several years by falsifying accounts and manipulating financial statements. He also created fictitious assets, fictitious cash and bank balances, and understated liabilities to make the company look more profitable than it actually was.

The scam was exposed when Raju confessed in a letter to the company's board of directors and the Securities and Exchange Board of India (SEBI). He stated that he had manipulated the accounts to the tune of Rs 7,000 crore over several years. The scam resulted in a loss of around Rs 14,000 crore to investors and stakeholders.

The aftermath of the Satyam Scam led to the company's downfall. Satyam's shares crashed, and it lost most of its clients. The government had to intervene and appoint a board of directors to run the company. Eventually, the company was sold to Tech Mahindra, another Indian IT company.

Ramalinga Raju and several other key officials of the company were arrested, and they faced charges of fraud, forgery, and criminal conspiracy. In 2015, Raju was sentenced to seven years in prison along with a hefty fine. The Satyam Scam exposed the need for better corporate governance in India and led to a number of regulatory changes to prevent such scams from happening again.