Founder of Indian outsourcing giant granted bail

HYDERABAD: A court granted bail to the founder of one of India’s largest software services companies, his lawyer said, nearly 19 months after he was arrested for allegedly stealing millions of dollars.

High Court Justice Raja Elango ordered Satyam Computer Services Ltd founder B. Ramalinga Raju to pay 4mil rupees (RM278,000) in bail yesterday and not leave the city while the case is on trial, attorney Bharat Kumar said.

Raju has been undergoing treatment for hepatitis in a hospital in Hyderabad, the capital of Andhra Pradesh state, for the past nine months while in police custody.

Satyam, once India’s fourth largest software services company, plunged into turmoil after Raju confessed in January last year that he vastly inflated the company’s assets by exaggerating cash balances, booking fake interest, overstating debt and understating liabilities.

The company’s name changed to Mahindra Satyam after Tech Mahindra, a unit of the Mahindra Group, bought a major stake for US$351mil (RM1.12bil) after the scandal erupted.

Investigators also filed charges against Raju’s brother and former managing director B. Rama Raju and six other company officials.

If convicted, all could face up to life imprisonment. All have now been released on bail.

Other charges against them include using forged documents, falsification of accounts and causing disappearance of evidence, investigators said. — AP

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