Ramalinga Raju
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 | This article documents a current event. Information may change rapidly as the event progresses, and initial news reports may be unreliable. The latest updates to this article may not reflect the most current information. (January 2009) |
Ramalinga Raju | |
|---|---|
 | |
| Born | September 16, 1954 |
| Nationality | Indian |
| Occupation(s) | former Chairman, Managing Director of Satyam Computers |
| Spouse | Nandini |
Dr. Byrraju Ramalinga Raju (born September 16, 1954) is immediate past Chairman of Satyam Computers. Satyam was established by Ramalinga Raju and others and was until recently perceived to be amongst the top Indian IT vendors with over one billion dollars in revenue. On January 7, 2009, Raju resigned from the Satyam board after admitting to corporate fraud.[2][3]
Early life, Education and Family
Raju was born to Byrraju Satyanarayana Raju in Bhimavaram. He did his B.Com from Andhra Loyola College at Vijayawada prior to receiving an MBA degree from Ohio University. He has attended the Owner/President course at Harvard. For his achievements and contribution to society, he has been awarded Doctorate by Anna University Chennai on 14 Dec 2007. He has two brothers and a sister. Raju is married to Mrs. Nandini. They have two sons, Mr.Teja Raju and Mr.Rama Raju, and a daughter, Mrs. Deepti, who is married.1[citation needed]
Career
Raju founded Satyam in 1987 after venturing earlier into other businesses such as construction and textiles. Some of them are reported to be failed ventures. He learned a great deal during his time at OU[clarification needed] and in the United States. During that time he foresaw the upcoming trend of outsourcing and the future prominence of computers. He started an IT company with 20 employees and bagged IT projects, mostly from US companies. Satyam rapidly developed and became a multinational company with thousands of employees spread over many countries. Raju showed a strong social orientation and has been furthering the cause of social transformation through Byrraju Foundation and EMRIEMRI.
Fraud
In January 2009 Raju indicated that Satyam's accounts had been rigged over a couple of years.[4] The botched acquisition attempt involving the company Maytas in December 2008 led to a plunge in the share price of Satyam and started unraveling the fraud.[4] It eventually ended in Raju admitting to the accounting fraud to the tune of 7000 crore Rupees or 950 million pounds, and resigning from the Satyam board on January 7, 2009.[5][6] The Indian subsidiary of PricewaterhouseCoopers was the auditor of Satyam.
Raju arrested
The Andhra Pradesh police on Friday night arrested disgraced former founder-chairman of Satyam Computers B Ramalinga Raju and his brother and former company managing director B Rama Raju on charges of cheating and forgery.
The Crime Investigation Department (CID) of the state police arrested Ramalinga Raju and Rama Raju on charges of "criminal breach of trust, criminal conspiracy, cheating, falsification of records and forgery", Director General of Police S S P Yadav said.
In his letter of resignation Raju explains how a cover-up for a poor quarterly performance escalated:
Awards
- Ernst & Young Entrepreneur of the Year Services award 1999.
- Dataquest IT Man of the Year Award 2000.
- Asia Business Leader Award 2002.
- E&Y Entrepreneur of the Year 2007
References
- ^ Karmali, Naazneen (12 October 2004). "India's 40 Richest". Forbes. Forbes.com Inc. Retrieved 2009-01-08.
- ^ Bhosekar, Prasaad (7 January 2009). "Village refuses to abandon Satyam chief". Zee. Zee News Limited. Retrieved 2009-01-08.
- ^ "Text of Mr Ramalinga Raju's statement". Business Line. The Hindu. 7 January 2009. Retrieved 2009-01-08.
- ^ a b Joe Leahy (08-01-2009). "The $1bn black hole at the heart of company's finances". Financial Times.
{{cite journal}}: Check date values in:|date=(help) - ^ Blakely, Rhys (8 January 2009). "B. Ramalinga Raju, chairman of Satyam, admits £1bn fraud and quits". The Times (London). News International Limited. Retrieved 2009-01-08.
- ^ "Mr Raju's resignation letter" (PDF). BBC News. BBC. 7 January 2009. Retrieved 2009-01-08.
- ^ "Satyam stunner: Highs and lows of Raju's career". Reuters. CNN-IBN. January 07, 2009. Retrieved 2009-01-07.
{{cite news}}: Check date values in:|date=(help)
External links
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