Satyam Case: SEBI Asks Ramalinga Raju, Five Others To Disgorge Unlawful Gains Worth Over Rs 624 Crore

In the 14-year-old Satyam Computer Services case, markets watchdog SEBI has directed the erstwhile company's founder B Ramalinga Raju, four individuals and an entity to disgorge unlawful gains worth over Rs 624 crore.

SEBI has also barred Ramalinga Raju and Rama Raju from the securities markets for nearly five years but the directions will be subject to the Supreme Court's decision on the pending appeals filed by the two individuals.

The scam at Satyam Computer Services came to light on Jan. 7, 2009, when Ramalinga Raju, then the company's Chairman, admitted to manipulating the company's accounts. SEBI's probe also revealed that the individuals traded in the company's shares during the period from January 2001 to December 2008 when in possession of unpublished price sensitive information about the firm's adverse financial position.

In a 96-page order, dated Nov. 30, SEBI directed Ramalinga Raju, Rama Raju, B Suryanarayan Raju, V Srinivas, G Ramakrishna and SRSR Holdings to disgorge the unlawful gains totalling Rs 624.09 crore.

The amount has to be paid along with an annual interest of 12% from Jan. 7, 2009 till the date of payment, according to the Securities and Exchange Board of India (Sebi).

SEBI's latest order came after the Securities Appellate Tribunal (SAT), in June this year, asked the regulator to pass a fresh order on or before Nov. 30.

In February this year, SAT set aside two orders by SEBI in October and November 2018 in the case with respect to calculation of the unlawful gains and certain other aspects.

"I find that imposition of simple interest on illegal gains at the rate of 12% from Jan. 07, 2009 till date of payment, is neither arbitrary nor excessive by any standard.

"On the contrary it is imposed judiciously in the facts and circumstances of this case and is consistent with past precedents," SEBI Whole Time Member Ananth Narayan G said in the order on Nov. 30.

According to the latest order, Ramalinga Raju, Rama Raju, V Srinivas and G Ramakrishna shall continue to remain under restraint as directed by the Supreme Court till appeals in the case are decided.

Ramalinga Raju and Rama Raju have been barred from the securities market till July 14, 2028, as per the latest order.

"Directions of restraint/debarment passed in this order shall be subject to any direction by the Hon'ble Supreme Court in the aforesaid appeals," SEBI said.