Truth behind SATHYAM Computers disaster!!

Satyam Computers fiasco and the criminal behind it.

If you were to believe in the phrase that " Picture speaks a million words" , have a thorough look into the above fragmented picture, the 6 different pics, they will tell you how things got from Good to Ugly for Ex-CEO of Satyam Computers Mr.Ramalinga Raju.

Mr. Byrraju Ramalinga Raju was so much a symbol of Telugu pride and his "Satyam Computers" was the only IT company from the state of Andhrapradesh to make it big. He clearly took advantage of early IT boom in 90s and Satyam grew unprecedentedly. Satyam Computers was started in 1987 as a small time software outsourcer and went into Internet market as well, in the name of "Sify".

Satyam computers has so many feathers on it's cap like, First MNC from Andhrapradesh, First Telugu company to be listed in NASDAQ etc.

Apart from the Hard work of Mr Raju, the successive governments in Andhra Pradesh led by Chandrababu Naidu facilitated his rise, pitting him against Karnataka's IT giants Infosys and Wipro. During TDP supremo N. Chandrababu Naidu's stint as chief minister, Satyam Computers expanded exponentially, giving Hyderabad its evocative alias, Cyberabad. [Refer Pic 1]

Source:- http://www.outlookindia.com/printarticle.aspx?239505

Naidu Made it a point to bring Mr Raju on to the dias along with likes of Bill clinton, Bill Gates to boost up the Company's image[Refer to pic 2] . He also lobbied hard for Satyam ,such as Central govt and state govt software projects and made sure they went into the kitty of Satyam computers. He could make it as a "collaborative partner of Microsoft ".

The employee strength of Satyam computers grew substantially from 2000 to 60,000 by 2004. Satyam computers bagged many international projects like FIFA world cup, EPL club, etc. The share price of Satyam grew substantially, from from mere Rs 9 in early 1990s to Rs 500 in mid 2000s. Such was the Meteoric rise of the company. Since it's inception the company was coveted with many prestigious titles. A few of them.

100 Leading Pioneering Technology Com - World Economic Forum

First IT Company in the World Certified under ISO9001:2000 - Veritas Quality International

Ranked Among Top 10 Best Companies to Work for in India 2002, 2003, 2004 by Business Today —Mercer—TNS Survey

Apart from this Mr.Raju was known for his charity work, he spent heavily on the people of AP, as a part of his "Corporate Social responsibility". He started the foundation " Byrraju foundation" in the name of his late Father. The Foundation could successfully bring visible difference in the rural lifes of many villages in six Districts of AndhraPradesh. The foundation became a hotspot of Intern students across the country and world as it was hostile for people willing to work ( I did there too). Mr.Raju's brainchild were 108 emergency Ambulance, Arogyasres [Refer pic 3] On this note he was awarded "Corporate Citizen I award for Corporate Social Responsibilit Business World by FICCI, and SEDF.

Things were going extremely smooth to Mr.Raju, The company grew by leaps and bounds and it was pleasantly enjoying the IT boom in India as well, bagged contracts of Banking sector, Hospital sector etc.

On one disastrous day, Jan 7th 2009 ,Mr.Raju has called for a press conference and announced to the Country that, he is resigning as the Chairman of Satyam Computers with Immediate effect and he also resigned as a Satyam board member and admitted to cheating six million shareholders to a cheating amount of 1.5 Billion Dollars.

Govt of India ordered a CID investigation, Mr Raju was found guilty and was arrested , along with him 9 other top ranked Satyam employees were also arrested, the Share price came to as low as "Rs 12 from Rs 500 " , Company was auctioned openly and eventually Mahindra bagged it for a throw away price.

Hidden story:-


If we ask to ourselves , why is it that someone who kept his lifetime hardwork, someone who built his company for 25 years with his Blood and sweat did some stupid thing like this? Remember he himself declared, that he cheated shareholders, otherwise nobody would have known the inside trading. Don't you think there will be some secret operation behind this? Some politician's hand in this? Yeah you're right. Here is the other part of the story, which is credited by genuine sources.


Ys you're right , It happened with advent of YSR. YS Jagan first had a quality private time with Mr.Raju when he invited Mr.Raju to open the Business edition newspaper of inaugural of "Sakshi Paper" in 2007 Jagan personally accompanied Mr.Raju on stage and inaugurated it. [Refer pic 4] It was this time Jagan's nasty eyes fell on Mr.Raju's wealth.


Still,It was 2008 and Y.S Rajashekhra Reddy' was ruling the state of Andhrapradesh. The schedule general elections of the state of AP were declared by election commission in late 2008 on the dates between " March 2009-April 2009". Coincedentally , It is the same time, the whole world got gripped in severe recession, The YSR led govt was desperate for another term to rule and he strictly followed "Money is king" type of policy, he thought that, huge amounts of liquid cash can beat the prevailing anti-incumbency factor against his govt. Meticulously, YSR started garnering cash from top notch business mans across the state. His modus operandi would be like, he would give lands or other tax concessions in returns of the monetary favours he would get.

These are the words of Mr Raju to the interrogators of CID.

He told his interrogators that YS Rajasekhar Reddy demanded Rs 500 crore in cash for the 2009 elections. It was a time when everyone was reeling under economic recession and liquid cash that too in black was not available at all. "I expressed helplessness and offered to give some assets but the chief minister insisted that I cough up the cash. He also told me that his son Jagan will talk to me in this regard," Raju told his interrogators.
Source :- http://deccanpost.in/view_news.php?nid=7863&cid=1&sid=1

To convince further YSR stooped as low as possible and offered, many prestigious projects that include the Rs 12,000 crore metro rail scheme, the Rs 1,500-crore Machilipatnam Port project, and three SEZs in Kakinada to Mr.Raju's son's company MAYTAS Infra (reverse of Satyam) . Remember Metro Rail project was already on cards and Mr.Sreedharan was asked to emulate the Delhi Metro model by Chandrababu Naidu on par with Banglore's Metro( Today it already started in Bang, but in Hyderabad the work just started) . In this process YSR did all that he can to get Sreedaran out of this project, since he had a very honest track record, and he succeded in sending Sreedaran out of this project with his delhi influences. Source:- http://www.firstpost.com/politics/late-ysrs-sins-begin-to-catch-up-with-son-jagan-mohan-65905.html

Raju said "Jagan stepped in and called me for a meeting to discuss the issue. Few others were present when the meeting took place. When I made it clear that I could not arrange the cash, Jagan roughed me up and threatened with dire consequences. [Refer to pic 6]It humiliated me like anything and I wept for two days. Then I thought about the legal and physical consequences if I failed to pay the money. I had no other option but to announce the financial crisis in Satyam and face the law of the land to save my own life and that of my family", Raju told his interrogators.

Raju had no option other than to give his money, it was impossible for him to give directly from Satyam's account , o he planned to " purchase his own son's company " Maytas for an exaggarated amount of Rs 6240 crores which would give him 90% stake of Maytas

This move shocked the corporate world for a) Why is it a software company buying an Infra company b) MAYTAS a small time company is highly overvalued to 6,240 crore C) Taking over another Family business is against the corporate rules. The Satyam board directors, the well wishers were all against this decision and many quit the company for this disastrous move.

By then, all industrialists and analysts clearly felt that this is nothing but pumping out public money into his own family's account. (None knew the evil intentions of YSR and Jagan was behind this. ) .

The TDP was aware of this and they immediately alleged that the attempted Maytas-Satyam merger was aimed at reviving Maytas so that money could be moved to political parties for the forthcoming general elections.

Mr.Raju was helpess couldn't take the pressure from public after making several wrong steps, he made the only choice he had, that is he surrendered by writing a letter. The letter addressed to the board members and the Securities and Exchange Board of India (SEBI), while the elections for Andhra Pradesh Legislative Assembly were held in April 2009.

YSR was shocked to learn this through news, he tried hard to reverse this back, he dismissed Satyam's problems as "an internal matter" but quickly backtracked his statement, seeing the shareholders's havoc and asked the central Govt for a CID probe.

But till ,date no one dared to bring this out into the media, since Raju feared the lives of his family from Jagan and he was silence. Mr. Raju is granted a bail 2 day ago is out of Chanchalguda prison after 32 long months,(Refer to pic 7) Let's hope Mr.Raju will soon announce this to the media and bring out the true flavours of Jagan. Source : - http://www.outlookindia.com/printarticle.aspx?239505