Wednesday, 23 July, 2014

Published July 16, 2014
India fines ex-IT firm chief over 'India's Enron'

[MUMBAI] India's equity market regulator has slapped multi-million dollar fines on the former chief of outsourcing giant Satyam and his aides for manipulating the firm's shares in a scandal dubbed "India's Enron".

B. Ramalinga Raju and four others, including his brother and former top officers of the firm, will have to pay interest on "wrongful gains" of around US$308 million within 45 days, the Securities and Exchange Board of India (SEBI) said late Tuesday.

Although the SEBI order did not mention the full amount of the fines, Wednesday's newspapers estimated that they would total about US$500 million, mostly owed by Raju.

"The noticees have committed a sophisticated white-collar financial fraud with pre-meditated and well thought of plan and deliberate design for personal gains," SEBI member Rajiv Kumar Agarwal wrote in his 65-page order.