Raju used 7,000 false invoices to fudge books

Raju used 7,000 false invoices to fudge books

Monday, 27 April 2009, 12:49 Hrs   |    5 Comments
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Raju used 7,000 false invoices to fudge books
New Delhi:The financial fraud perpetrated by the founders of Satyam Computer Services was executed through a well-planned accounting system that used as many as 7,561 fraudulent invoices worth 5,117 crore to inflate the company's sales, the Central Bureau of Investigation (CBI) alleged Monday.

To perpetrate the fraud, the accused also created an identity and code that not only bypassed all other accounting systems, but also managed to hide the fraudulent invoices from other departments, the premier investigating agency said.

"Investigations revealed that the accused have already entered 6,603 out of these false and fabricated invoices amounting to 4,746 crore into their books of accounts thereby inflating the revenues of the company to this tune," said the CBI in a statement.

The CBI came to the conclusion using cyber forensic techniques to unearth the alleged 78-billion ($1.5-billion) scam that is alleged to have been perpetrated by group's founder B. Ramalinga Raju and his associates.

The accused had used an emergency option of feeding invoices directly to the company's inventory management software, which in normal circumstances would be routed and validated through several software systems.

Simultaneously, the scamsters generated a new identification code called "Super User", that enabled them to hide or "unhide" invoices created in the company's Invoice Management System, thereby making the fraudulent invoices invisible to other departments.

"The amounts pertaining to these false and fabricated invoices were shown as receivables in the books of accounts of Satyam, thereby inflating the revenues of the company," the statement said.

The agency also identified the computer server used for storing the "incriminating data" resulting in the identification of the perpetrators of the fraud, unearthing the quantum of the fraud, and the modus operandi used by the accused.

Meanwhile, the trial court rejected the bail application of the Raju brothers and former chief financial officer V. Srinivas April 25 and gave CBI the permission to conduct further investigation into acquisition of assets by the accused and diversion of funds.
Source: IANS
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Reader's comments(5)
1: I wish he had used his Brains in positive way, then we could have proudely said "There goes the Genius Indian". Anywaz i think he might have scored a record in the law book for such a crime.
Posted by:Tariq - 29 Apr, 2009
2: Raju did this froud form company and what is the Law of our india say May he wiil go in jail for a Few years.i think not more than 10 15 year.but what about the money does it recover form him or form his property. As he is intelligent I think he neverever keep on his name any property.and whoever sarrounding him ethier his barother or wife wives and others.CBI has to invesigat that those pepole has property from where they brought.and than sil that and sold it and return money to pepole.
Posted by:Altaf Chauhan - 29 Apr, 2009
3: Raju the God Father of Satyam Scandal,no doubt if he had used his brains then something could have happened.
Posted by:Anupam Rout - 28 Apr, 2009
4: i must say.. watever he might be.. the man has brains. and the patience involved in him to shape each and every step to cover the fraud is commendable.. had he used the same brains in checking how the company could be revived and had he spent the same amount in something constructive, Satyam would have still remained 'Raju's Satyam'.
Posted by:shombhit - 27 Apr, 2009
Hats off to Raju's intelligence. :P

Hez really a genius. He conducted it so well.
Sush.. Replied to: shombhit - 27 Apr, 2009