Raju, Satyam Chairman admits fraud; resigns

Chennai, Jan 7: Ramalinga Raju, Chairman of Satyam Computers resigned on Wednesday, Jan 7. It was rather shocking to know the admittance of fraud by Ramalinga Raju. Raju submitted a letter along with a balance sheet to the board. The Balance sheet and letter clearly indicated the fraudulence of Raju.

Raju in his letter states, "the Balance Sheet shows a inflated balance of Rs 5040 crore. Rs 1230 crores has not been reflected in the books," states Raju.

While Ram Myanpati will act as Interim CEO, Merrill Lynch can be entrusted to explore.

As per the revelations, second Quarter numbers were inflated to Rs 2700 crore vs Rs 2112 crore actual numbers. No board member had any knowledge of the real situation of the books.

Shares in Satyam Computer shed all gains to turn negative after Satyam announced its Chairman's resignation from the board. Share prices of Satyam were down by 61.42 per cent at 69.10 rupees. (12.10 pm)

Raju has claimed to stay in the board till it is extended. He also states that he is prepared to subject himself to the law.

Read on.. Ramalinga Raju's letter to Satyam's Board Members

OneIndia News (With inputs from Agencies)