Close X
Wednesday, November 6, 2024
ADVT 
India

Rise And Fall Of Ramalinga Raju, The Bill Gates Of Andhra Pradesh

Darpan News Desk, 09 Apr, 2015 11:33 AM
    He was once considered the IT czar and the Bill Gates of Andhra Pradesh, who founded and built Satyam into one of the top IT companies in India.
     
    B. Ramalinga Raju even shared the dais with Bill Clinton when the then US president visited Hyderabad in 2000.
     
    A special CBI court on Thursday sentenced Ramalinga Raju, his two brothers and seven others to seven years in prison in what is described by the Central Bureau of Investigation as the biggest corporate fraud in India's history.
     
    The 60-year-old Raju, who already spent 32 months in jail before he was granted bail in 2011, has returned to prison.
     
    It was in 2009 that this poster boy of India's IT industry had a dramatic fall when he resigned as chairman of Satyam Computer Services Ltd. while admitting that the company's account books and profits were inflated over many years.
     
    He was arrested and sent to jail.
     
    From the cosy environs of his posh bungalows and state-of-the-art offices to the claustrophobic confines of Chanchalguda jail in Hyderabad, life suddenly took a cruel turn for him.
     
    The son of an agriculturist and hailing from West Godavari district in coastal Andhra Pradesh, he launched business in textile weaving and construction in 1977.
     
    He had no engineering background but his brother-in-law D.V.S. Raju, an engineer, inspired him to enter the IT sector by setting up Satyam Computer Services in 1987.
     
    Proving his entrepreneurial skills, Raju built Satyam into a IT bellwether.
     
    One of the pioneers of offshoring, it started remotely delivering IT services to some clients in the US in 1991.
     
    The success with offshoring was followed by the Y2K boom, which catapulted Satyam to the top league.
     
    Satyam ventured into the internet business through Satyam Infoway in 1988. After surviving the dotcom bust, it started concentrating on software services.
     
    In the mid 1990s when Hyderabad was emerging on the world IT map, Satyam was the biggest name and it was no wonder that he shared the dais with the likes of Bill Clinton.
     
    Raju was also well respected for his involvement in corporate social responsibility.
     
     
    Byrraju Foundation and the Satyam Foundation earned him reputation through various projects, especially the 108 medical emergency services in Andhra Pradesh and other states.
     
    Raju also had a long list of awards, including the E&Y Entrepreneur of the Year Services award 1999, the Dataquest IT Man of the Year Award 2000, the Asia Business Leader Award 2002, and the Golden Peacock Award for Corporate Governance.
     
    Satyam was listed on the New York Stock Exchange in 2001 and the revenues exceeded $1 billion in 2006 and $2 billion mark in 2008.
     
    It remained the fourth largest IT services firm for a long time with operations through the parent company and subsidiaries in as many as 65 countries.
     
    A few weeks before the scam came to light, it had reported annual revenues of $2.4 billion and a total employee size of 53,000.
     
    The trouble for Satyam began in December 2008 when it announced plans to buy two Maytas firms owned by Raju's sons. He had to call off the deal within hours due to opposition by the shareholders. The share price started tumbling.
     
    The same month World Bank blacklisted Satyam for eight years on grounds of data theft and bribing bank officials.
     
    After the scam, Tech Mahindra took over Satyam Computers in a government-sponsored auction and the new entity was named Mahindra Satyam.
     
    The Satyam brand became history in 2013 with the merger of Mahindra Satyam with Tech Mahindra.

    MORE India ARTICLES

    Modi seeks ideas for PMO mobile app

    Modi seeks ideas for PMO mobile app
     Urging young engineers to help move India to the status of an innovation hub, Prime Minister Narendra Modi on Sunday said he will invite ideas from the public for developing a mobile application for the Prime Minister's Office towards making it mobile-friendly."The faster you all make mobile apps, the faster you will capture the market. We need a revolution in mobile governance. We will launch a competition through mygov.In to seek ideas for a PMO mobile app," he said at an event here to mark 25 years of the IT industry body Nasscom

    Modi seeks ideas for PMO mobile app

    Bhushan expresses differences with Kejriwal

    Bhushan expresses differences with Kejriwal
    New Delhi,  Reflecting his discontent about the functioning of the Aam Aadmi Party, senior leader Prashant Bhushan has written a letter raising questions about some decisions of party convenor Arvind Kejriwal who is now chief minister of Delhi. In the letter, apparently written to members of party's national executive, Bhushan has raised questions about the party running a "person-centric" campaign in Delhi polls and not following some of its professed principles.

    Bhushan expresses differences with Kejriwal

    Feel sad: Yogendra Yadav

    Feel sad: Yogendra Yadav
    New Delhi, AAP leader Yogendra Yadav on Monday said that he felt sad over false reports about him and Prashant Bhushan being unhappy with the happenings in the party, added this was a time to work with a large heart following their big win in Delhi. "I feel sad and at the same time (feel like) laughing too after reading whatever is being said in the media about me and Prashant ji for the last two days... Delhi has given such huge mandate to AAP. I would appeal that we should not let the faith of people dwindle in the AAP," Yadav said in a tweet Monday morning.

    Feel sad: Yogendra Yadav

    India to have superior earth observation satellites: ISRO chief

    India to have superior earth observation satellites: ISRO chief

    Thiruvananthapuram, Feb 26 (IANS) India will soon have satellites with superior earth observ...

    India to have superior earth observation satellites: ISRO chief

    Swine flu deaths cross 250 mark in Rajasthan

    Swine flu deaths cross 250 mark in Rajasthan

    Jaipur, Feb 26 (IANS) The swine flu epidemic continued to rage in Rajasthan with six more de...

    Swine flu deaths cross 250 mark in Rajasthan

    Passengers spared, freight rates hiked in India's rail budget

    Passengers spared, freight rates hiked in India's rail budget

    New Delhi, Feb 26 (IANS) Sparing a passenger fare hike but raising freight rates again, Mini...

    Passengers spared, freight rates hiked in India's rail budget