Satyam Raju liable for prosecution
Ramalinga Raju, founder and promoter of Satyam Computers and other board members and senior executives of the company, who had been aware of the funds-fudging fraud, are liable for prosecution under the laws of the land. The punishment could be imprisonment up to 10 years.
Some of the more serious penalties that Raju and others are likely to face under various laws are:
Under Section 23 of the Securities Contract Regulation Act 1956, the adjudicating officer of SEBI is empowered to impose a penalty of imprisonment up to 10 years and fine up to Rs 25 crore.
Under Section 24 of the SEBI Act 1992 Raju and others can be awarded a penalty of imprisonment up to one year for infringement of any provisions of the law or rules and regulations, including fraudulent and unfair trade practices (FUTP).
Section 477-A of the Indian Penal Code provides for a penalty of imprisonment up to seven years. The police may invoke this IPC provision meant to punish those found to have falsified accounts willfully and with intent to defraud either suo motu or on the recommendation of the serious fraud investigation office (SFIO).
Section 211 of the Companies Act imposes a penalty of imprisonment up to six months. The company law board is empowered to punish those who are found to have willfully failed to comply with the requirements of law relating to the annual financial statement.