Raju laundered cash before scam came to light
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Raju laundered cash before scam came to light

Monday, 29 March 2010, 02:49 Hrs   |    40 Comments
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Raju laundered cash before scam came to light
Hyderabad: In a startling revelation, a whistleblower has told CBI that the six bank accounts and fictitious firms that the company's disgraced Chairman B Ramalinga Raju had floated in London had were liquidated long before the scam came to light in January 2009, reports Sagar Kumar Mutha of Times News Network.

"The six companies and bank accounts which were operated from London were started in 1999 and closed down just before the listing of Satyam's American Depository Rights on New York Stock Exchange in May 2001. These accounts and fictitious firms were clearly part of Raju's modus operandi to divert Satyam scam money," whistleblower said.

CBI sources said the whistleblower contacted the agency on his own and his statement is being currently recorded. "Since these benami accounts no longer exist, this person will be able to provide us valuable leads as to the trail of the money that were in these accounts," a CBI official said.

While CBI has not revealed the identity of the whistleblower, STOI has been able to gather that he is a Hyderabadi-origin UK national settled in London and was once associated with the company's UK operations. "CBI got acquainted with this individual while it was pursuing its investigations into suspected money laundering activities of Ramalinga Raju abroad," the official said and added some close family members and relatives of this mysterious individual still live in Hyderabad.

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Reader's comments(40)
1: brinkka2011 says: Thanks for taking the time to talk about this, I feel strongly about it and appreciate finding out additional on this subject. If possible, as you acquire experience, would you thoughts updating your blog with extra information? It is very useful for me.
Posted by:penis enlargement - 12 Sep, 2011
2: Shalini Macaden in wipro is notorious for her sexual escapades with her superiors
Posted by:tanvir - 11 Jun, 2010
3: wipro is a big fraud company.sex lies and video tapes is not unusual in wipro.
Posted by:noor mohommed - 11 Jun, 2010
4: not ony satyam management, bigger scandal, scams in WIPRO.
Sex sells best in wipro, women employees joining wipro BEWARE!

It is alleged that wipro’s apex HR bosses are mediating these illicit relationships. One such example is Chennai wipro employee “Manjula” whose tape is well-known over internet http://rapidshare.com/files/369234751/indian- mms-sex-scandal-video-of-wipro-employee-manju la-chennai-hot-girl-home-made-masala-clips.ra r. Another case reported from Wipro cochin campus.Wipro Managers are a cluster of offenders playing rot with the wipro Senior leadership. Most of the managers make a fuss of forbidden activities within the company’s campuses. There was an allegation about intimate relationship of Shalendra Kumar, Project Manager with Shalini Macaden HR Manager in Wipro’s Horizontals . There is enough uncertainty about her kids paternity. Regrettably her spouse is ignorant of the facts. Equally there are frequent cases of paternity problems with horny wipro women employees. Wipro code of business ethics is a mere eyewash. Debate does not stop with this scandal. There is a bigger sting to this with top HR personal involved in funds dealings However for an normal person it looks unlikely that “How come a HR Manager at that level be involved in the financial fraud. The HR directors are encouraging these affairs to cover up their own financial malpractices. The proximity of these HR managers with the persons at director level is well known. However the Director level hr Managers encouraging these forbidden affairs within the campuses still remains a mystery

Posted by:pravin - 16 Apr, 2010
5: Thanks Mr.Rao for for giving me a boost
i agree with you
Posted by:nitin vaidya - 29 Mar, 2010
6: Dear Friends
At the end of the day in this globalized world clients look for value ,return of investment in IT ,certainity ,project execution ,on time delivery,speed to adapt and absorb changing buisness scenarios.
Writing complex code that spans thousands of lines debugging it ,testing and delivery requires high degree of patience ,technical skills ,high degree of analytical skills
that is something that evolves over time,it just cannot be produced in a day or two like an assembly lane.
my dear Indian friends ,Infy,TCS,Wipro,Mahindra Satyam have all of the above and moreover please do not forget the days when some of the students from India needed to go to USA for further studies (iam talking about early 1980's to late 1980's) you have to take a RBI foreign exchange permit and then go to Retail banks(SBI,Bank of Baroda etc) to get travellers cheques(us dollars) as the government has only little precious foreign exchange with it ,similarly before C-Dot to get a phone connection one has to wait a long time ,it is during these times the Indian Software companies were born ulike the western counterparts (Accenture(USA) ,eds(USA),IBM(USA),Cap Gemini(French company) etc) where they already excellent infrastructure in place.
,and can anyone forget the numerous power cuts that we have in the indain metro's , there were not even that many domestic flights like we have now in India at that time.
with ingenuity ,resiliance and the never dying Indian spirit Shiv Nadar (HCL Technologies),Narayana Murthy (Infosys) ,Azeem Premji(people say at this age he still climbs the stairs at wipro if the lift seems away & busy),
It is defintely a miracle what the Indian IT companies have achieved (TCS,Wipro,Infosys ,HCL especially)
Dr Sreedharan (Delhi Metro) is now aged around 70 years still very agile and puts in his best effort towards project execution for the expansion of the network.

sri G.Mallikarjuna Rao(of GMR Group) has an excellent policy he has already used legal advice and worked out steps should conflict of interest arise if at all in future ,Hyderabad International airport is barely 3 years old it is already ranked best in its category.how many of you guys know that Turkey prime minister desperatly wanted an upgrade for International airport at Istanbul in a record time with quality ,in the end it was GMR group in collobaration with Berhad holdings (Malaysia)that has
delivered it.
Mahindra Tractors are selling very well all over the world that includes America(USA),South America,China,Africa etc,becuase of the price ,quality ,service all being best.
there are good reviews for Mahendra Bolero,Scorpio in south america and south africa ,its pickup that has made debut in queensland(Australia) has got good reviews as well.
These are just a few of the examples ,the above have been acompolished with ingenuity ,hard work ,lots of patience and heaps of resilience when india's growth rate was not as high as now.
i urge all Indians to look forward to future especially my dear Young Indian bothers and Sisters ,keep your feet on the ground think of all the great people we have ,about your parents ,teachers who taght you ,Dr kalam's inspiration ,the people who scarificed their lives for independant india ,these words will give you lot of inspiration ,strength and resilieance ,patience that should then take you twoards the right path ,and you will be able to achieve your goals and therby help fellow indiand to lead a better life where every indian child has education ,and an atmosphere of peace and harmony prevails
rama mohana rao anne
sydney australia

Posted by:rama mohana rao anne - 29 Mar, 2010
Thanks for the insight... yes the fight (to survive and compete) is tough and no matter wat we indians have to get going.
Thanks for these inspirational words... like your compilation.
Vinay Verma Replied to: rama mohana rao anne - 01 Apr, 2010
8: Yes, comparing to our politician Satyam's Raju is good who did cheated people with big promises. but our politician every min acts like they are dedicated for the people welfare but noting they are doing. Ecxept critising each other. But Raju gave many families a good life. what he did, i think he thought to save the company and employees by doing the Fraud but...I support Raju
Posted by:Arjun - 29 Mar, 2010
Yes, comparing to our politician Satyam's Raju is good who didn't cheated people with big promises. but our politician every min acts like they are dedicated for the people welfare but noting they are doing. Ecxept critising each other. But Raju gave many families a good life. what he did, i think he thought to save the company and employees by doing the Fraud but...I support Raju
Arjun Replied to: Arjun - 29 Mar, 2010
10: I do not agree some people saying life in india is not possible with sincerity I also do not agree all politicians are corrupt either yes some are but again even in Australia where iam based there are cases of corruption .
Defintely there are good and sincere Indian people we have Dr Apj Abul Kalam ,Dr Manmohan Singh ,Rahul Gandhi ,P.Chidambaram,Sachin Pilot(spearheading IT infrastructure for North East ,Nandan (UIID Project)and various others in the union cabinet.
We do have good insitutions apart from I.T examples include like ISRO (started in 1960's and doing a good job it .) there is B.H.E.L it is a very good company that has profits and its order book is filled before ,after and during Global Financial crisis ,iam taking about orders from various faoreign countries from all over.
State Bank Of India started in 1840's(formed with meger of Bank of bengal ,bank of madras etc) and is in a very strong position employing a huge work force ,and lots of branches.
Similarly tata's are in india from more than 200 years ago and continue to be one of the best groups.Essar Group,Bajaj group ,mahindra & mahindra ,Jindal ,JK Group(Raymond suitings & shirtings) Reliance (originally Vimal suitings).

here is a link that says Indian Software sector is most trusted by 88% cent repsonedents in a survey.Friends everyone knows about GFC crisis ,but one thing the stood its ground is Indian IT sector(Sofware).

Delhi Metro (Dr Sridharan) is a very good example what india can achieve lots of interest is shown by the leaders of other developing countries to see how they can have a transport like Delhi metro.
Yes IT took off in early 1990's ,but it was TCS that broke big interms of revenues ,
1.TCS has executed some of the trunkiest projects in the world examples include an Energy project(UK),Shipping & Ports(Germany),Banking(Switzerland),Ferrari Formula - 1 racing car(yes tcs software is behind it to fine tune its speed).It is the only company that has executed projects in all continents and provided value to its clients(certainty ),TCS has a travel labs dediacted to Travel industry ,its client British Airways ,Virgin Atlantic are some of the leading airlines that benefit from it.

2.HCL was started more than 30 years ago ,they made india's first pc (siva pc ,microprocessor etc). Hcl has delivered software for both Airbus and Boeing(landing navigation etc).

3.Infosys is defintely in a league of its own today over its interns are from top 93 universities of the world
(http://www.infosys.com/InStepWeb/about-internship/default.asp),it has tie up with Cambridge ,and has filed patents in I.T .Finnacle its Core Banking Software has been licensed by banks from Greece,Middle east ,Africa ,Bank of Baroda,Anz Bank's loan subsiadiary(
Essanda online).

Similarly Wipro ,yes satyam has executed projects and provided value to clients as well.
I have no doubt that in general Indian IT sector has provided a very good value to its clients whether they were american,japanses,swiss,germans,italians,asia pacific,china all languages,geographies ,time zones,and all projects from enterprise applications to embedded software.
I am of very high opinion that Infosys ,TCS ,Wipro all are all well positioned to encounter any competition and keep performing as the fundamentals like training(Infosys GEC center at Mysore),use of tools to maximize the returns,good project management ,CMM -SEMI standards,etc.
Especially Infosys ,TCS ,HCL are differentiators ,Infosys will see many more patents ,TCS with its decades of project execution and Travel Industry like labs that it has at Chennai ,will open more ,HCL is not just a plain software house (Sap,Java ,.Net etc),it is an engineering powerhouse when I say engineering some very serious stuff like Embedded systems,highly complex code execution for aviation industry .

Satyam Mahindra under the able leadership of sri Anand Mahindra will break new grounds in future ,Mahindra group is now mature ,they are as equipped as anyone across the globe to face any challeng as it arises.

What we need is more quality education for young Indians already Reliance has committed for a university ,the union government has expanded IIT network (hope the standard of faculty is as good in the new ones as the traditional ones.)

there are numerous examples of medium comapnies in new technologies like http://www.praj.net/(started by an IITIAN called pramod chodhary near pune has already did his corporate social responsibility by donating to his alma matter (IIT Mumbai for more scholarships),there are good
companies in the infrastructure like GMR Group(already Hyderbad airport is ranked good in its category after only a short span of operation).

I see hope for the future and I want all Indians to feel positive with firmly the feet on the ground.
We need to invest more in the clean energy sectore more like starting Ecological Science degress in IITS so that we can produce more quality engineers who can start new companies that can produce products that will sustain and help Indians to have a better quality of life.

rama mohana rao anne
sydney australia
Posted by:rama mohana rao anne - 29 Mar, 2010
Kudos for Your extensive recollection of Achievements By Indians and India INC, it makes us really proud despite some blacksheep trying to Mar us
Suresh Replied to: rama mohana rao anne - 29 Mar, 2010
12: Raju is one of the smart, helpful, courageous, high personality person i had ever seen. Even narayan murty or any such type of person can't compete with Raju's brain power. Raju has turned many poor families life to better and then best. Paying 40 to 50 thousand to a fresher graduate is not a joke. But he had given that. What did all these bureaucrat and politicians did for india. Only thing i know they did is gulped thousand crores of Indian people money and hiding those black money in switzz bank. No one is shouting against them. I think these indian people gone mad and had no will to choose correct people. They only shouts on what these media houses shows, which is again a rising corrupt organization. These media houses now a days takes money from politician and run the news in favor of them. Throw all these foolish politician who don't even knows to sign and these quota crafted bureaucrat who always licks politician to get some quota for themselves. I would say encourage raju type of people, then only India will shine. The time didn't went well for Raju, else he would be master of all today.
Posted by:Shankara - 29 Mar, 2010
Hi sir, for your kind information. Satyam paid 20k per month for freshers. Some of my friends in college joined in Satyam in 2007. That time infosys offered 25k per month.
Niranjan Replied to: Shankara - 29 Mar, 2010
I'm fully agree with your view. We should wake up and choose high qualified person instead of these "ANGUTHA CHAAP" politician. They are making policies for us(high qualified people).Why can't we make policy for ourself which will in turn improve our life. Raju indeed made many people life good before this scam came out. I would not call this as scam. This was the need of time and the time didn't went good for raju. Apart from that to save many other fraud person he accepted all the charges, wat i feels. But no matter raju did the
Simi Replied to: Shankara - 29 Mar, 2010
Sure Raju is a great technocrat and he is not so brainy as like politicians & Business Tycoons like Reliance or Tatas in India who make these things each and every day under world
Yeppie Replied to: Simi - 29 Mar, 2010
16: Shocking revelation.Ethical working restrains people from greed. Greed leads to fall and disgrace. Others must take lesson. Government and corporate/Private should have more whistle blowers but whistle blowers must be provided due protection before they dare to blow the whistle.
Posted by:Piyush C.Sharma - 29 Mar, 2010
17: Raju was truely a pioneer in recognizing the virtues of technology and it's strengths in supporting the country's growth, long before everyone rushed to it. He clearly benefited from his pioneering efforts, similar to Wipro, INFY and TCS. His Waterloo was in his zeal to grow at any cost. The technology opportunity was huge when he started and he could have made Satyam another Infosys had he built it on a strong and a virtous governance model.

Like Mark Twain says "Do the right thing, it will gratify some people and astonish the rest". Narayana Murthy's lore has many such stories, where he stuck to his guns on value issues, hence their success. As corny as it may sound, it needs to be acknowledged that Raju did do the right thing in the end, which may have been his only plausible option. He does deserve credit for that as salvation lies in true repentence.

The "Benami Business Model" is the norm and not the exception in the traditional Indian business context. He may have survived this chaos had he not taken the bait from the then political establishment and got suckered into so called sweet heart land deals that MAYTAS tried to capitalize on. I still remember his quote from his first public acknowledgement of fraud, where in he said running his empire was like "Riding a tiger, he would be eaten alive the moment he got off". I was really surprised by how he came out on his own in admitting his falacies. We will never know what really got him to that point. He may choose to share that with the world at some point maybe perhaps in a book. All said and done the crux of this catastropic failure points to a simple operating universal truth "Satyameva Jayate". I am sure it was truely liberating for Raju to come out with the truth. He clearly demonstrated great candor and fortitude in doing so, which often gets missed in the rancor.

Raju may not be the proverbial villain portrayed in Tollywood/Hollywood movies and he may have done many good deeds. However, it is the means in which he got where he got eventually caught up to him. WE all know that the Indian corporate landscape is fraught with many large companies with such backgrounds and they continue to survive. The key operative word that explains the dichotomy is "Globalization". Alas! Raju missed the point. To serve global markets, you need to build a company with global values.
Posted by:Gopal - 29 Mar, 2010
18: I would say "Satyam, Shivam, Sundaram" to Chairman B Ramalinga Raju and then kick his ass!
Posted by:OneOpinion - 29 Mar, 2010
Hi Friends,

Some people talking about Mr.Ramalinga Raju badly, first let me tell me one thing Y dont u think about many many political leaders doing corruption ( Eg.Lalu Prasad) and so many are there.

But Satyam done good job by establishing BYRAJU Foundations and 108 SERVICES. So leave RAMALINGA RAJU.

NOW U PPL look this stupid politicians and try to avoid them.
SURYA Replied to: OneOpinion - 29 Mar, 2010
I agree my dear friend. According to me, Mr. Raju is not bad. So some thing happens beyond that. If he did the crime, He can manage the same way, or do some thing to protect him. But in this case, he is not doing like that. If may did any mistake, our govt. can give one more chance to him.
m.premraj Replied to: SURYA - 29 Mar, 2010
21: looks like now CBI want to go UK and spend( public money ) some time . Enjoy INDIA Enjoy..
Posted by:subramanyan - 29 Mar, 2010
raju is a very good person he never do mistake or try to do mistake. Something whet wrong,he did many things to people like social organizations like EMRI 108 ,BYRRAJU FOUNDATION like organizations done so many services to people.Today the people say he is a fraud this is not right way to abuse on such a good person like raju, we have to once think when ur abusing a person but not blindly think once what happend there........

sri Replied to: subramanyan - 29 Mar, 2010
Sure you can lot of charity if the money comes from others pocket. Show me anyone who is doing these kind of generous charity with his hard earned money. Either godmen getting money through so many ways or bid people who make lot of money through their business is doing charity.
Tell me how much %age of your hard earned money you give for charity or poor people in your village or near to your house or poor people's education or orphanages or old age homes etc.
AGS Replied to: sri - 29 Mar, 2010
24: Looking at Raju in different angle, for a lot many people, Raju provided hope by giving opportunities and good life. When there were not many employers employing people, Satyam recruited people in its firm, people got IT experience and also great salaries accompanied by opportunities. During 2004 (when I graduated), getting into Satyam would have been a dream come true for me..
Everyone knows that to get any simple job done from government employees or govt. departments - means money, pay them money they ask for and they will do the work.
I think Raju might have had to pay lots and lots of money to these cheep value-less politicos. And obviously, have to pay from company's accounts. And to show that expenses he might had to manipulate the accounts...
Common guys, everyone knows that to live life perfectly is impossible in India, It is like wearing white clothes and walking in drain- and expect that cloths would not get dirty.
Ask any Satyam employee, they would only have praise for Satyam. That is what counts. How many lives did Satyam helped change....
Posted by:Vishnu Vardhan - 29 Mar, 2010
I fully agree with your views and at the same time he betrayed the investors for his won benefit.

Please note that he is not dealing with government or govt. employees as this is an IT Firm.

The problem is he took a bite more than what he can really chew. So he is paying for that.
AGS Replied to: Vishnu Vardhan - 29 Mar, 2010
You are right. Satyam have improved lives of so many poor families, it was the first company to go to villages to generate employment in ITeS sector. But, he must have avoided the manipulation of accounts.
R Rajendhran Replied to: Vishnu Vardhan - 29 Mar, 2010
27: When a man doing fraud? i think only thing corruption and greedy we should and we can fight against corruption but cant against greedy dont punish getting corruption one who giving

Thank you my dear people
Posted by:anbu - 29 Mar, 2010
28: One hand is never enough to sound a clap, there has to involvement from the government. Plus a person of the power and financial stature like that of Mr. Raju can influence many things to turn them in his/her favour.
Posted by:Rider - 29 Mar, 2010
29: You have to blame it on Income Tax Concessions under sections 10A,B available to IT firms under STPI act for all these Frauds.Listed companies no longer long for earnings from the balance sheets but from the inflated artificial valuations they get for their share holding in stock market.It was easy for Mr.Raju to show unheld profits to do all stock market friendly window dressing of balance sheet to get his share quoted at astronomical value to further pledge or sell to get money to start ventures like Maytas.Till the day of Fraud,All Finacial institution were so happy to lend satyam and even FII and private equity held major share and were trading satyam shares to make huge profits.PWC till Raju confessed was fine with satyam`s accounts.So whom to blame,Mr.Raju?No,it is the Tax concessions,Tax Holidays,SEZ are to be blamed.
Poor Raju was caught because he made good of his money with his share off loading to fund his other Maytas project and he had no other option other than confessing to other major share holders because his holding got reduced and was very minimal.
Just imagine if no tax holidays were available to Satyam he would have never had this idea of making money with valuation as no window dressing of balance would have been possible if corporate tax @ 35% to be paid.
Who knows many stayam like IT firms might be in hiding under the shelter of STPI tax cover.
Posted by:Shyam Prabhakar Kunte - 29 Mar, 2010
i agree with you absolutely
ravishankar Replied to: Shyam Prabhakar Kunte - 29 Mar, 2010
31: At one point of time the Satyam was an important and reputed IT company,but overnight after the confession of its mentor Ramlingam raju the Govt. became vigilant to declare it one of the biggest scam,up to that point of time what Govt. of India officials were doing. The officers responsible for it must also be punishd.
Posted by:P.S.Thakur - 29 Mar, 2010
32: Govt should seriously punish white caller criminal 420 like raju
Posted by:True Indian - 28 Mar, 2010
Ya Y don't the government punish 420 politician voted by you. I think you don't know what does Satyam and Mr.Ramalingaraju mean to people who have worked there.
Deepak(:) Replied to: True Indian - 29 Mar, 2010
the one should be punished who really helped Mr. raju
Damodhar Replied to: True Indian - 28 Mar, 2010
As a true Indian, you should be punished for having supported many white collars who are squandering INDIA. Raju to me is innocent.
Matter Replied to: Damodhar - 29 Mar, 2010
36: Man lost all ethical values and lose control on what for he chase this lot of money ,this kind of things happen!Whats he gains at the end, having all this money.People should know the limit of the money,an individual can enjoy.Even Money having excess, Stale and
Posted by:pradeep - 28 Mar, 2010
37: In order to commit a fraud of such a magnitude Raju had to start preparing the way from a long time..
Posted by:girish - 28 Mar, 2010
Try to understand what made Mr. Raju commit this mistake, because for committing a mistake there might be some reason.
Damodhar Replied to: girish - 28 Mar, 2010
I agree that there are always reasons for committing mistakes, but that does not in any manner justify the mistake. Understanding the reason only makes it more imperative for justice to be served.
Alister Replied to: Damodhar - 29 Mar, 2010
Just imagine paying RS 6000,00,00,000 (6K crores) for 1 lakh employees yearly. Plus 3 cr for each office maintainance + 20 lks for each office for govt bribes(electricity, water, labor, health).

Try putting a tea stall in hyderabad without bribes then you are greater than narayana murthy, premji and even gandhi.
srini Replied to: Alister - 27 Apr, 2010