In seven-year old Satyam scam case, Sebi has directed the 10 entities linked to the main accused B.Ramalinga Raju, including his mother, brother and son, to disgorge over Rs 1,800 crore worth of illegal gains made by them.
They even have to pay Rs 1,500 crore as interest on the disgorgement amount, as the penalty which has been levied with effect from January 7, 2009. From the day Satyam Computer’s founder and then Chairman Raju admitted to a massive long-running fraud at the company.
SEBI has given 45 days of time for the amount to be paid with an interest.
Disgorgement order was passed by Sebi in July last year, wherein the regulator had barred Raju and four others from the markets for 14 years and also asked them to return Rs 1,849 crore worth of unlawful gains with interest.
That order was against Ramlinga Raju himself, his brother B.Rama Raju (then Managing Director of Satyam), Vadlamani Srinivas (ex-CFO), G.Ramakrishna (ex-vice president) and V.S.Prabhakara Gupta (Ex-Head of Internal Audit).
The latest order has been passed which include Raju’s mother B.Appalanarasamma, his two sons, Teja Raju and Rama Raju Jr, his brother Suryanarayana Raju, B.Jhansi Rani (wife of Suryanarayana), Chintalapati Srinivasa (then Director of Satyam) and his father Anjiraju Chintalapati (since deceased), as also Chintalapati Holdings Pvt Ltd.
With regard to IL&FS Engineering and Construction (IECCL), Sebi, however, said it was neither an insider in Satyam Computers and Maytas, nor did it have access to the ‘unpublished price sensitive information’, and therefore it has been spared of any debarment action.