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Satyam's major investors lose Rs 1,600 crore
By contrast, the fraud enabled Raju’s kin and aides to make hundreds of crores, charges CBI. - Mahindra Satyam to expand Malaysia operations - Satyam tanks 13% as CBI doubles scam loss - CBI files supplementary chargesheet in Satyam scam - Satyam gets refund notices from 37 firms - Mahindra Satyam appoints Vadrevu for strategic initiatives - Special court to hear Satyam case Fifteen major Indian institutional investors — including Birla Sun Life, ICICI Prudential, Franklin Templeton, HDFC Asset Management, UTI Asset Management and Reliance Life Insurance — which invested in the fraud-hit Satyam Computer Services Ltd (SCSL), are understood to have together suffered ‘wrongful losses’ of slightly over Rs 1,600 crore. This is part of an estimated loss of Rs 14,162.25 crore incurred by various investors (including retail) in the company. Satyam founder B Ramalinga Raju, his brothers B Rama Raju and B Suryanarayana Raju, and their kin received Rs 749 crore by offloading SCSL shares during 1999-2006, the period when the company’s accounts were fradulently inflated, according to sources. Sources added that the Central Bureau of Investigation (CBI) had gathered “adequate evidence” to prove that Satyam’s then financial executives had gained over Rs 50 crore by “offloading the shares during the fraud period, when share prices were artificially kept high.” The officials who benefited allegedly include former chief financial officer V Srinivas (gained Rs 32 crore), senior vice president - finance, G Ramakrishna (Rs 11.27 crore), vice president - finance, D Venkatapathy Raju (Rs 1.76 crore), head of internal audit Prabhakar Gupta (Rs 4.48 crore) and assistant manager- finance, Ch Srisailam (Rs 89 lakh). In 2007- 08 and 2008-09, the Satyam founder, his brothers and their spouses received dividends to the tune of Rs 25 crore “when the company was actually not making any profits,” the CBI said. They had also pledged SCSL shares “after artificially inflating the share prices” and availed of loans from various nonbanking financial companies to the tune of Rs 1,951 crore. With regard to diversion of funds, the CBI did not disclose any significant amount. It just said the Satyam promoters had diverted Rs 72. 5 lakh from SCSL into front companies owned by them in the year 1999. In an earlier report, the CBI had estimated the loss suffered by institutional investors at Rs 958.98 crore. The investigating agency said a further probe had revealed that the loss suffered was higher. The institutions and the loss suffered by them in brackets are: Birla Sun Life (Rs 111. 88 crore), ICICI Prudential (Rs 22.68 crore), Franklin Templeton (Rs 100.37 crore), HDFC Asset Management (Rs 190.45 crore), UTI Asset Management (Rs 85.97 crore), Canara Robeco (Rs 6.14 lakh), ICICI Prudential (Rs 698.67 crore), ICICI Lombard (Rs 1.53 crore), Reliance Life Insurance (Rs 5.94 crore), HDFC Standard Life Insurance (Rs 218.07 crore), SBI Life Insurance (Rs 22.84 crore). SBI Funds Management (Rs 26.5 crore), Metlife India Insurance (Rs 23.76 crore), Fidelity Fund Management (Rs 102.88 crore) and Max New York Life Insurance (Rs 18.36 lakh). The CBI had estimated the total loss suffered by investors in SCSL was Rs 14,162.25 crore, based on the average share price fall after the fraud confession of Raju on January 7, 2009.Quick Loans commented:
As the fraud of Satyam Industries come out in fore it has been observed that Satyam\'s major investors lose Rs 1,600 crore
30.11.2011