Sebi directs Ramalinga Raju, five others to cough up gains worth Rs 1,747.5-Cr
As per the new order Ramalinga Raju, Rama Raju, V Srinivas, and G Ramakrishna would remain under restraint as directed by the Supreme Court till all the appeals in the Satyam case were decided.
HYDERABAD: The market watchdog Securities and Exchange Board of India (SEBI) has directed the founder of Satyam Computer Services B Ramalinga Raju, four others, and a company to cough up unlawful gains worth more than Rs 624 crore plus 12 percent interest taking the amount to be paid to 1,747.5 crore assuming they pay it back by January 2024, the deadline.
The Satyam scam was revealed in 2009 when the then-company chairperson Raju admitted to the fudging of accounts. Sebi’s inquiry into the case showed that some individuals traded in the company’s shares unpublished price-sensitive information from January 20001 to December 2008.
After fourteen years into the revelation by Raju, the Sebi in a 96-page order on November 30, directed Ramalinga Raju, Rama Raju, B Suryanarayana Raju, V Srinivas, G Ramakrishna and SRSR Holdings to disgorge the said amount.
The order directed them to pay 12 percent annual interest on the amount from January 7, 2009, till the date of payment. The Sebi’s orders came after the Securities Appellate Tribunal (SAT) directed it to pass a fresh order. In February of 2023, the SAT set aside the watchdog’s orders asking it to change calculations of the unlawful gains.
As per the new order Ramalinga Raju, Rama Raju, V Srinivas, and G Ramakrishna would remain under restraint as directed by the Supreme Court till all the appeals in the Satyam case were decided.