Close X
Tuesday, November 5, 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

    Girl Shot Dead In Bengaluru School Hostel, Suspect Held

    Girl Shot Dead In Bengaluru School Hostel, Suspect Held
    A teenage girl was shot dead at a residential school hostel here allegedly by an office attendant. The suspect has been arrested, police said on Wednesday.

    Girl Shot Dead In Bengaluru School Hostel, Suspect Held

    Lights, Camera, Action! Bollywood-themed Eateries Trend Pan-India

    Lights, Camera, Action! Bollywood-themed Eateries Trend Pan-India
    Imagine gorging on 'Anda Apna Apna' or 'Chicken Tussi Great Ho" at a restaurant with walls splashed with Bollywood posters, dialogues and film memorabilia. Special-themed eateries across India are cashing in on the craze for everything Bollywood - films, songs and stars.

    Lights, Camera, Action! Bollywood-themed Eateries Trend Pan-India

    Minor Girl Raped In Delhi

    Minor Girl Raped In Delhi
    The girl was hospitalised after the incident in east Delhi's Preet Vihar on Saturday. The man took the girl from her house by telling her parents that he wants to feed "kanyas" (young girls) on the occasion of Hindu religious event Ram Navami, which marks the end of the nine-day Navaratri festival.

    Minor Girl Raped In Delhi

    Unseasonal Rain Kills Seven Across India; Damages Crops

    Unseasonal Rain Kills Seven Across India; Damages Crops
    The fury of unseasonal rain in different states of north and east India since Sunday evening has left at least seven people dead and damaged standing crops in thousands of hectares, officials said on Monday.

    Unseasonal Rain Kills Seven Across India; Damages Crops

    Bharat Ratna, Padma Awards Conferred On Prominent People

    Bharat Ratna, Padma Awards Conferred On Prominent People
    Bharat Ratna, the highest civilian award, was bestowed posthumously on freedom fighter and eminent educationist Madan Mohan Malaviya at an investiture ceremony at Rashtrapati Bhavan on Monday evening.

    Bharat Ratna, Padma Awards Conferred On Prominent People

    17 Die As Floods Ravage Kashmir

    17 Die As Floods Ravage Kashmir
    Up to 16 people were killed on Monday as a devastating flood in the Kashmir Valley forced thousands to flee to safer places as rain-fed streams rushed down the mountains, flooding parts of Srinagar. A man was washed away by a swollen river in Jammu region.

    17 Die As Floods Ravage Kashmir