India’s Satyam chief resigns-Ramalinga Raju

Satyam Computer plunged into a deep crisis, as B Ramalinga Raju resigned as its chairman after admitting to a Rs.65.92-billion (Rs.6,592-crore) fraud and subjected himself to the “laws of land.” He said his last-ditch efforts to fill the “fictitious assets with real ones” through Maytas acquisition failed. The announcement led to a free fall of the blue chip’s shares on the Indian bourses, as institutional and retail investors alike dumped the scrip from the first hour of trading.

“It is with deep regret and tremendous burden that I am carrying on my conscience, that I would like to bring the following facts to your notice,” Raju said in a regulatory statement, and listed out the ‘facts’ that led to his decision to quit the company he founded.

Shares of the company plunged by over 40 per cent soon after the resignations. Satyam, considered a ripe proposition for acquisition, was pushed into crisis after Raju was forced to abandon the acquisition of Maytas Infrastructure and Maytas Properties promoted by his son. Satyam’s stock has collapsed by more than 60 per cent, and reports claim that Merrill Lynch has terminated its contract with the company.

By United India
Ravi Agarwal

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