The Satyam Computer Services scandal, also known as the "Satyam scam" or "India's Enron," was a major corporate scandal that occurred in India in 2009. Satyam Computer Services was a global information technology services company based in Hyderabad, India. At the time of the scandal, the company was listed on the National Stock Exchange of India and the Bombay Stock Exchange, and it was considered one of India's leading IT companies.
The Satyam Computer Services scandal, also known as the "Satyam scam" or "India's Enron," was a major corporate scandal that occurred in India in 2009.
The scandal came to light in January 2009, when the company's founder and chairman, B. Ramalinga Raju, admitted in a letter to the company's board of directors that he had been manipulating the company's financial statements for several years. According to Raju, the company's true financial position was much worse than what was reflected in the financial statements, and the company was facing significant financial difficulties.
The revelations caused a major scandal in India and led to the resignation of Raju and several other top executives. The company's stock price plummeted, and it was eventually delisted from the stock exchanges. The Indian government launched a criminal investigation into the matter, and Raju and several other executives were charged with fraud, forgery, and other crimes.
The Satyam scandal had significant consequences for the Indian IT industry and for the country's reputation as a place to do business. It also highlighted the need for stronger corporate governance and regulatory oversight in India. Despite these challenges, the Indian IT industry has continued to thrive and has remained an important contributor to the country's economy.
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