HOME > BUSINESS > Satyam to pay $10 million to US for Raju’s fraud

Satyam to pay $10 million to US for Raju’s fraud

Mahindra Satyam, the new avatar of Ramalinga Raju’s Satyam Computer Services will pay $10 million (Rs 46 crore) as penalty to the US stock market watch-dog, the Securities and Exchanges Commission or SEC.

It will also have to comply with “certain” unspecified condition, according to a statement issued by the company a few minutes ago.

“The Company consented to the entry of a judgment requiring it to pay a civil penalty of $10 million, comply with the US federal securities laws, hire an independent consultant, and comply with certain undertakings,” it said, without elaborating on what the conditions will be.

The settlement with the SEC has been reached “without admitting or denying allegations of any wrongdoing,” it said.

The deal also concludes the SEC’s investigation of accounting issues as to the Company started after the detection of an accounting fraud perpetrated by the Company’s former management from at least 2003 through September 2008.

The company was later bought over by Tech Mahindra Limited in July 2009.

In its press release, the SEC referred to “the unique and significant remediation efforts made after the fraud became public in 2009” and stated that Mahindra Satyam had been transformed “into a new company with new management, directors and investors and state-of-the art controls.”

Vineet Nayyar, Chairman, Mahindra Satyam, said, “We concluded that it is in the best interests of Mahindra Satyam and its shareholders to resolve this matter and put it behind us on the basis announced today. The new management of the Company are committed to the highest standards and we will never betray the trust of our investors.”

Follow ULTRA.news