Satyam scam: SEBI passes order asking company's promoters to disgorge Rs 1,747 crore

The six entities named in the order are B Ramalinga Raju, B Rama Raju, B Suryanrayana Raju, SRSR Holding Private Limited, V Srinivas and G Ramkrishna.

Securities and Exchange Board of India (SEBI) on November 30 passed another order in the fraud case involving Satyam Computers Services asking six entities to pay back unlawful gains of Rs 624 crore plus interest on them at 12 percent per annum.

The total amount that these entities need to pay is about Rs 1,747.5 crore assuming they pay it back by January 2024 when the deadline is set. This includes an interest amount of Rs 1,123 crore for about 15 years.

The six entities named in the order are B Ramalinga Raju (ex-chairman of Satyam), B Rama Raju (ex-MD), B Suryanrayana Raju (Brother of Ramalingam Raju), SRSR Holding Private Limited (entity promoted by Satyam’s promoters), V Srinivas (ex-CFO) and G Ramkrishna (ex-Vice President - Finance).

The order follows the Securities Arbitration Tribunal (SAT) order on February 2, 2023. The SEBI had passed disgorgement order in this case earlier as well, which was subsequently challenged by the accused in higher courts, including SAT and Supreme Court.

“I..hereby direct that the Noticees shall disgorge the unlawful gain made by them calculated in Table No.19 of this Order, along with simple interest at the rate of 12 percent per annum from January 07, 2009 till the date of payment. As directed by the Hon’ble SAT vide its order dated February 02, 2023, the unlawful gain shall be borne individually,” said Ananth Narayan G, Whole Time Member, SEBI, in his order.

Individually, calculated unlawful gains for B Ramalinga Raju is Rs 20.43 crore, for B Rama Raju Rs 20.43 crore, for B Suryanrayana Raju Rs 51.44 crore, for SRSR Holding Private Limited Rs 518.36 crore, for V Srinivas Rs 9.58 crore and for G Ramkrishna Rs 3.83 crore. These do not include applicable interest.

The market regulator asked the entities to pay the amount within 45 days.

Besides, the SEBI said B Ramalinga Raju and B Rama Raju will continue to be barred from dealing in market till July 14, 2028. Rest have already served their ban period.