-Money Laundering
-Data manipulation
-Inside Trading
India has witnessed one of the high-level scams back in time. Few were caught, a few flew away to different countries and few got arrested. From 2G to common wealth scam, but have you ever heard of Satyam computers, which was one of the biggest IT scams in India back in 2007?
Ramalinga raju was one of the tech experts who was born in a middle-class family and pursued excellence in academics. During the IT boom in India, he started many businesses which failed in the beginning. He established Maytas infra, Satyam computers and real estate firms. He was given the best business award back then. When Satyam launched its first IPO, people had high expectations and Infosys, Microsoft and many companies were still in the initial phase of building. Satyam was also listed on the New York Stock Exchange, from that level of growth to how people lost faith and it was eventually declared fraudulent.
The Scam
Being honest is always the best choice, but satyam tried to choose data which was improper. They showed profits which were not applicable with fake data and fake revenue numbers. Due to such numbers, the share market prices have increased to 170 rupees. The people who invested hugely in Satyam had expectations of high returns. A sudden incident by Lehmen brothers in the world shook the markets and the world was under collapse.
The stock markets fell down, the impact also hit Satyam. So they decided to merge all his companies into one platform. This made the investors question the decision. An unidentified letter came out saying the data on profits, growth and employees working in that firm was fake and had wrong numbers. This brought Satyam Computer's shares to 6.50 rupees in just 48 hours.
The CBI investigation has revealed several new insights into Satyam computers, saying ramalinga Raju was transferring money to European countries and buying land for his family members by inside trading. People have lost 7000 crore but later CBI investigation allegedly found around 14,000 crore. Satyam computers were removed from Nifty, sensex and was later arrested in 2009 by the CBI. This news impacted entire IT firms and later Mahindra group acquired Satyam computers and named it Tech Mahindra today.
