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Raju brothers to face investigators over “India’s Enron”

Byrraju Ramalinga Raju (pictured), the founder of Indian IT company Satyam, and his brother will now be interrogated by officials looking into the accounting scandal that has been dubbed “India’s Enron”.

A previous ruling had protected the family from being handed over to the authorities, but the scale of the alleged crime seems to have ensured that the brothers will now have to answer some very awkward questions.

In January Raju admitted that his company's balance sheet contained non-existent cash worth over $1 billion, company profits and the amount of debt owed to the company were overstated, while its liabilities were understated.

The 54-year-old claimed he acted independently of company directors, but failed to exonerate his brother Rama Raju, Satyam’s managing director. Both men are expected to cooperate fully with investigators from the Securities Board of India.

Founded in 1987, Satyam was India's fourth-largest technology company with sales of $2.1 billion, employing 53,000 staff. The Raju family built up a stake in the company that reached 8.6%.

Related link:
The family ties to the Satyam scandal

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