Satyam Case
General Motors and General Electric were all provided services by Astray. Mr. Raja announced a SSL . Billion bold for two Mantas companies operated by his sons, saying he wanted to deploy the cash available for the benefit of investors. The pressure given by Investors and the market forced him to retreat his proposal within hours.
January 7 2009, Mr. Raja resigned from Astray with a letter stating his fraudulent behavior. He systematically falsified Satyr’s financial reports to gain shares for his mother and younger brother. Small discrepancies grew over time to unimaginable orations ending in millions and billions of rupees overstated.
Raja was siphoning approximately $4 million a month from the company by having 13,000 fictitious employees.
Observers predicted that the Astray case would cause harm to Indian’s credibility and reliability in IT services. World Bank also banned Astray after employees hacked into the system and accessed sensitive information. Investment banker ADS Merrill Lynch terminated Its services with Astray after learning of the scam. Finally, Rambling Raja announced confession of over RSI. 00 core financial fraud as he resigned as chairman of Astray.
Later revealing In his letter that his attempt to buy the two Mantas companies was his last attempt to “fill fictitious assets with real ones”, Admitting “It was like riding a tiger without knowing how to get off without being eaten”. Astray Adders lost 50% of their value overnight. Astray became a takeover target. Prior to the shocking announcement, there was a long list of reported suitors for Astray. They included HCI Technologies, Wiper, IBM (IBM), Hewlett-Packard (HIP),
Larsen & Tabor Infected, Cognizant (ACTS), Cap Gemini (CAP. PA), and even private equity players KIRK and TAP to lash out the 3 billion dollar company. Tech Maidenhair, a Pine-based software-services company focusing on telecoms was also a prospective buyer. The announcement of the deception resulted In the plummet of Satyr’s stock by 78 % bringing down the Bombay Stock Exchange. Overnight, Satyr’s Adders lost 50% of their value.
The following year Maidenhair’s company Tech Maidenhair bought the company naming it Maidenhair Astray.
