Punishment

 The Securities and Exchange Board of India (Sebi) issued a fresh order in the
Satyam case on Thursday directing 10 entities linked to the main accused B.
Ramalinga Raju, including his mother, son and brother, to disgorge more than Rs
1,800 crore worth of illegal gains made by them.
 Besides, they will have to pay close to Rs 1,500 crore as interest on the
disgorgement amount as the penalty has been levied with effect from January 7,
2009, the day Raju, founder-chairman of erstwhile Satyam Computer, admitted to
the massive fraud in the accounts of the company.
 Except Raju's another brother B Suryanarayana Raju and former internal chief
auditor V S Prabhakar Gupta, all the others eight accused were found guilty under
IPC sections 467, 468, 471 and 477A, relating to forgery of security, forgery for
purpose of cheating and falsification of accounts, according to V Chandrashekhar,
Superintendent of Police, CBI Hyderabad Zone.
 Ramalinga Raju gets 7 years jail

 A special court on Thursday sentenced B. Ramalinga Raju, founder of the erstwhile

Satyam Computer Services Ltd, and nine others to seven years of rigorous
imprisonment, convicting them in India’s biggest corporate fraud case after a
marathon trial.

 Ramalinga Raju and his brother Rama Raju, who was Satyam’s managing director
at the time the fraud surfaced six years ago, were also fined up to R5.5 crore each,
said K. Surender, senior counsel for the Central Bureau of Investigation (CBI).
 B.V.L.N. Chakravarthi

 Judge B.V.L.N. Chakravarthi ruled that the case involved “grave offences affecting
the reputation of the corporate system of the country as a whole and the economy
of the country".
 “Justice demands that courts should impose punishment fitting to the crime so that
the courts reflect public abhorrence of the crime," he observed citing another
judgement in passing his 971-page order, which came at the end of a four-and-a-
half-year-long trial in Hyderabad, where Satyam was based.
 CBI charged the 10 suspects with collaborating to inflate revenue, fabricate
invoices, falsify accounts and income tax returns, and forging fixed deposit receipts
to paint a rosy picture of the company’s financials to deceive the public.
 K. Surender

 K. Surender, the prosecution lawyer who argued on behalf of CBI, said the
judgement sent out a strong message to perpetrators of corporate fraud. “If you are
indulging in crime, you will have to face the consequences," Surender said, adding
that he was satisfied with the judgement.
 The fraud surfaced in January 2009 when Ramalinga Raju admitted in a letter to
the company’s board and stock exchanges to have inflated revenue and profit over
several years in an accounting fraud to the tune of ₹ 7,136 crore, making it India’s
biggest accounting scam; he retracted the confession in the course of the trial.
Subsequent investigations by CBI estimated the amount at ₹ 14,000 crore.
 Ramalinga Raju and Rama Raju have spent 31 and 30 months, respectively, in
prison, and will have to serve only the remainder of the seven-year term.