India’s federal investigation agency has submitted a fresh batch of charges against several former executives and two auditors of Satyam Computer Services, alleging they filed false documents for income-tax payments.
According to a Central Bureau of Investigation (CBI) statement, the charge sheet was filed before the ACMM Court in Hyderabad and covers four former employees: The chairman, managing director, CFO and vice-president of finance. The agency also issued charges against two former third-party auditors in Bangalore under allegations of criminal conspiracy, breach of trust, cheating and forgery for the purpose of cheating, using forged documents and falsification of accounts.
The CBI claims to have evidence that Satyam allegedly filed false income tax returns with fraudulent and dishonest intentions of cheating shareholders.
The latest filings come 12 months after Satyam founder, B. Ramalinga Raju, admitted the Indian outsourcer inflated profits and revenue for several years. They are the third in a series of actions by CBI including its first filing was submitted on April 7, and a supplement charge sheet on November 24.
“The accused have inflated the revenue of the company by infusing false and fictitious sales invoices and shown the amount received and deposited as fixed deposits in various scheduled banks,” the CBI alleged. “Due to this inflated revenue and the inflated income in the form of interest on the non-existent fixed deposits, an additional tax liability to the tune of Rs. 526.37 crore [$125.5m] was created on the company.”
Satyam was acquired by Tech Mahindra through a government-instigated bidding process in April 2009 and was rebranded Mahindra Systems in June.
In the meantime, Raju and other former Satyam executives accused in the case are in custody, awaiting trial.