Corporate Governance
Corporate Governance
In 2009, thei CBC took over the case and filed three partial charge sheets , over the course of the year.all charges
arising from the discovery phase were later merged into a single charge sheet.
On 10 April 2015, Byrraju Ramalinga Raju was convicted with 10 other members
On 2008, one independent director of the company,
US academician Mangalam Srinivasan, announced his resignation, followed by
three more independent directors, Vinod K Dham(famously known as the father of the
Pentium and an ex-Intel employee), M Rammohan Rao (Dean of the prestigious Indian
School of Business), and Krishna Palepu (professor at Harvard Business School).
B. Ramalinga Raju resigned as chairman of Satyam on January 7, 2009, after admitting
to a financial scam involving over Rs. 7800 crore. In his letter, he indicated that his purchase
of Maytas firms was his final attempt to replace fictional assets with genuine ones. It was like
riding a tiger and not knowing how to get off without getting devoured, he said in his letter.
Satyam’s proprietors, B Ramalinga Raju and his brother B Rama Raju, were detained by
state police in Andhra Pradesh, and the firm was taken over by the Central Government.
Satyam-770x433.webp
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RAMALINGA RAJU
Kingfisher Scam
The former member of parliament (Rajya Sabha) and a famous businessman, named Vijay Mallya, is the ex-chairman
of united spirits and the chairman of united breweries group indulged in beverage alcohol, fertilisers and real estate
business. He became the chairman of the company at the age of 28 and focussed on the growth of his family business
and company since then. He is also known to own a famous IPL team Royal Challenger Bangalore for a long period of
time. He also expanded his business outside the country in many foreign countries and also acquired berger paint in his
name. He has also been elected as the member of parliament two times from Karnataka state.
He invested all the collected funds in the airlines, as a result of which his kingfisher airlines became the popular
domestic Airlines in the country. He also wanted to expand the Airlines but the government imposed various
restrictions and did not allow it to carry on with international flights. As a consequence of this, he manipulated his own
united breweries company to buy another company going in loss . Deccan airlines and merged it with his own airlines
but could not make profits as desired and indeed suffered a great loss.
In order to continue his business, he took heavy loans from various banks but was not paying it back
. Many banks declared him bankrupt and did not provide further loans but he continued to take it from
different banks using his influential position. Another unethical practice done by his airlines was that they
were not paying any PF and salaries to their employees and taxes to the government. With such great
losses continuously, he refused to pay the salaries of his employees and shut down his business.
details of major loans and the amount taken by him is given below: