In 1987, Hyderabad based IT company, Satyam Computers was established by two brothers -Ramalinga Raju and Rama Raju. Company was listed in BSE in 1990-91 and was supposed to be a jewel of IT companies. But in reality, company is an outcome of crime.

It's known as Satyam Scam - India's one of the largest financial scams, which was about to be included in the series - BAD BOY BILLIONARIES, India's popular series. But, chairman of Satyam computer services - Ramalinga Raju, filed a petition in high court of Hyderabad against the series - stating that if the scam will be included in the series it will affect his reputation.

What Made The Company, A Scam?
Satyam computers was one of India's fastest growing companies but boom in real estate derived the mind of Ramalinga towards it as real estate rates were increasing rapidly. As a result, Ramalinga started purchasing properties in different states of country on the names of his family members. This continuous purchasing of properties gave rise to this scam.

When he needed more money to buy property, he started manipulating financial statements of his company and started misrepresenting the accounts in front of boards, stock exchange, regulators, investors, and other stock holders. All this badly inflated company revenues, profits, interest liabilities and cash balances and pretended that company was growing rapidly which leads to the rise of share prices of the company, so the brothers started selling these shares and taking loans on rest of the shares in order to buy more properties which was bought on the names of workers of their farm, whom he has made the directors of his companies.

Ramalinga Raju even had internal information of Hyderabad metro route, so he bought the land nearby the metro route to earn money. He printed fake sale invoices of company to show its growth, he showed the increasing sales but was unable to show profits, so he made fake bank statements and pretended that he has cash reserves in the banks and attracted many investors by his lies which again lead to the increase in share prices of Satyam and he kept on investing money in real estate by selling shares. Slowly gap increased in original and fake figures which turned out to be a huge amount.

Because of 2008 recession there was cheapness in real estate and the plan of selling properties on higher prices to reduce the gap of company's actual and fake figures was a flop. Even all other plans were flopped like selling Matyas company to Satyam computers in Rs.7800 crores which was the last plan of the Ramalinga Raju and that caused a major drop in stocks of Satyam. In 2009 Ramalinga Raju confessed that Satyam computers are manipulating financial statements of the company.

Decision Of The Court:
After the confession, special court of CBI granted 7 years regress imprisonment to brothers with a fine of Rs 5crores .7 others also got the imprisonment with the fine of 20-25 lacs

After the scam Government of India and SEBI were cautious and made an obligation over companies that they should be changing their auditors every 10 years.