Page last updated at 12:17 GMT, Thursday, 22 January 2009

Satyam 'padded employee numbers'

Satyam's office in Bangalore
Satyam is struggling as clients cancel contracts

Fraud-hit Satyam inflated the number of employees working for the IT firm to siphon off cash, a prosecutor has said.

Prosecutor Ajay Kumar said at a court hearing that claims by former Satyam boss Ramalinga Raju that the firm employed 53,000 were exaggerated.

Mr Kumar said that Satyam's workforce was closer to 40,000 and said Mr Raju drew millions of rupees each month in the name of non-existent workers.

The prosecutor said that Mr Raju also forged documents.

At the hearing in Hyderabad, Mr Kumar asked the judge to extend the custody of Mr Raju and two other executives while investigations continued.

Earlier this month, Mr Raju admitted that he falsified Satyam's accounts, causing a huge plunge in the company's share price.

The Indian government has since appointed directors to the company's board to help devise a rescue plan.

The company is now struggling as clients cancel contracts.

KPMG and Deloitte have been hired to audit the company's account after Mr Raju said he had inflated assets by more than $1bn.



Print Sponsor


SEE ALSO
Satyam board looks to raise cash
14 Jan 09 |  Business
India Satyam fraud office probe
13 Jan 09 |  Business
India appoints new Satyam bosses
12 Jan 09 |  Business
Indian IT scandal boss in custody
10 Jan 09 |  Business
Indian IT scandal boss arrested
09 Jan 09 |  Business
India IT boss quits over scandal
07 Jan 09 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific