After admitting to commiting a Rs 7,000-crore fraud, disgraced Satyam chief B Ramalinga Raju faces arrest and could serve as many as seven years in jail.
Ramalinga Raju yesterday (January 7) admitted a Rs 7,000-crore fraud in the Hyderabad-based company and revealed that the balance sheet of Satyam had been inflated and that he would subject himself to the laws of the land.
On its part, the Hyderabad police said they would take action against him only if a shareholder or the regulator lodges a complaint. Raju had written a letter to the board giving details of the companies balance sheet which has serious financial irregularities including inflated cash balances running into several crores of rupees.
Satyam stocks took a serious beating yesterday with this latest news that has shocked investors. The stocks plunged by almost 80 percent at Rs 39 per share, at day close. Ram Myanpati will act as interim CEO of the company.