It’s being described as Enron part two. Satyam’s Rs 5,000-crore fraud has shaken corporate India, deeply denting India’s image in the global market and eroding the credibility of the IT industry which sells on good corporate governance.

Satyam has won several awards for the same and chairman Ramalinga Raju’s resignation has left that reputation in shambles.

Raju in his letter has admitted to fudging Satyam accounts for years. He inflated the balance sheet to show Rs 5040 crore which never existed and falsified the company's financial position and performance.

While Raju has said that he is ready to face the law, angry shereholders will surely want to see him suffer. Andhra Pradesh government has already ordered an investigation.

Company Affairs Minister P C Gupta assured action will be taken “against the accused”.

The Securities and Exchange Board of India, too, is calibrating action.

“This is an event of a defined magnitude and first of its kind. We have to learn a few lessons and figure out appropriate action,” said SEBI Chairman, PC Bhave.

Raju will have to face the Americans too, since Satyam is listed in the US

The question is not just how and when he will be prosecuted, but how India inc will repair the damage to its credibility.

“I am surprised, I am shocked. It’s a scandal, it’s a fraud. I don’t think anyone expected this,” said HDFC Chairman, Deepak Parekh.

Anand Mahindra of Mahindra and Mahindra said he was disturbed too. “I am one of the coaches in the upcoming Davos conference, the first thought on my mind was - you go in almost defensively because you aren’t projecting India shining".

The role of independent directors and auditors on Satyam is now under the scanner. The fear is this could be the first of many more skeletons inside corporate cupboards.