Markets watchdog Securities and Exchange Board of India (SEBI) has ordered the founder of Satyam Computer Services B Ramalinga Raju, four others and an entity to disgorge unlawful gains worth over Rs 624 crore in the 14-year-old Satyam scam. According to a report in Moneycontrol, the total amount plus interest on them at 12 percent per annum is about Rs Rs 1,747.5 crore and has to be paid back by January 2024 when the deadline is set.
The interest amount in the total payback is Rs 1,123 crore for about 15 years. Sebi passed the order on November 30 in the fraud case involving Satyam Computers Services.
What SEBI Said In Its Order
In its 96-page order, Sebi asked Ramalinga Raju, Rama Raju, B Suryanarayan Raju, V Srinivas, G Ramakrishna and SRSR Holdings to disgorge the unlawful gains of a total amount of Rs 624.09 crore. The interest on it has been calculated from January 7, 2009, the day when scam came to light, till the date of payment, reported PTI.
According to PTI, Sebi also restricted Ramalinga Raju and Rama Raju from the securities markets for nearly five years (till July 14, 2028). However, the report added, the directions will be subject to the Supreme Court's decision on the appeals filed by them.
"I find that imposition of simple interest on illegal gains at the rate of 12 per cent from January 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 November 30, as quoted by PTI.
According to the latest order, PTI said, the four individuals shall continue to remain under restraint as directed by the Supreme Court till appeals in the case are decided.
"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.
SAT's Observations On Case
Notably, the directions came after the Securities Appellate Tribunal (SAT), in June this year, asked the regulator to pass a fresh order on or before November 30. In February this year, SAT set aside Sebi's two orders in the case with respect to calculation of the unlawful gains and certain other aspects.
The Scam
The case came to light on January 7, 2009, when Ramalinga Raju, the then company Chairman, admitted to manipulating the company's accounts. As per the report, Sebi's investigation had 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.