The Scam that Stunned India: Satyam Computer Services

Journey into the heart of one of India's biggest corporate scandals - the Satyam Computer Services fraud. Once hailed as a technology titan, Satyam was listed on both Indian and New York stock exchanges, boasting a market cap of over $10 billion at its zenith in 2006. But behind this facade of success lurked a web of deceit spun over a decade by its founder, Ramalinga Raju, and his family.

In this video, we dissect the rise and dramatic fall of Satyam, whose fraudulent practices led to a staggering $1.5 billion discrepancy in the company's balance sheet, culminating in the destruction of billions in shareholder value and a 90% plunge in stock price. We unravel the complexities of this sophisticated scam, shedding light on the events that led to Raju's arrest and the largest corporate fraud in Indian history. Witness the unfolding of this riveting saga, which serves as a stark reminder of the dark side of corporate ambition.

0:00 - 2:04 Intro
2:05 - 5:15 The rise
5:16 - 8:43 The fraud
8:44 The aftermath



#Wallstreetmillennial #india

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[kapilsharmaWorld_uncensored]

We were in College in the city of Pune where Satyam has its 2nd biggest office.
The day of collapse, thousands of Employees were kept standing on the bus stops for their pick ups by the office buses.

They all walked till office, saw Locks and realized they lost their jobs that second.

Total chaos in the city that day was.

[rishavbadola]

Fun fact “satyam” means truthful in Sanskrit

[mrperfect]

Hey, I'm from Hyderabad the headquarters of once Satyam and Ramalinga Raju. What many people don't know is that the Raju family are still billionaires but just not on paper. The money they siphoned off from Satyam into shell accounts and Maytas Infra was used to buy valuable land in the city of Hyderabad. It has been nearly 15 years, and the real estate market/economy of Hyderabad has boomed multifold. Raju was released from jail in 2015 and ever since then he maintains a very low profile in the city, but his sons and extended family are rumored to be big landlords and businessmen with close relations to the ruling state government. 
Another detail missed was that Satyam has 3 remnants today Cognizant, Tech Mahindra, and another small 200M Nyse-listed company called Sify Technologies.
Overall he is a brilliant man who got too greedy by going into real estate.

[rahulpadalkar]

My dad used to work for Satyam when it collapsed. Luckily he was on notice period when this happened. He said he saw people in the company crying their eyes out because they had taken out huge loans and had no income source.

[timfitzhenry]

At around the 8:10 mark a comment was made that more and more unnecessary workers had to be hired to justify the revenue. Remember when FAANG and other firms laid off well-paid employees who later said they never had work to do.

[pdempsey]

OMG! I worked on a project at Satyam for 6 months! It was a side project that proved to be not viable, but not part of the scam either. From that time in India here's some insights: In India at the time, there was the big three: Infosys, TCS and Mahindra. Everyone considered Satyam a distant 4th. The word I heard was that they won contracts because their bids were so so so much lower than anyone else. A TCS guy once told me "nobody knows how they could make money on that..." (project at that price). In a joke song I play with my buddies, I wrote this verse (only Indians and probably only Hyderabadis will find it funny):

I lunched with Raju, in Begumpet
That Ramalinga Raju, don't know jack 5h!t
He screwed me out of my salary, and now I got to split.

[sanchitkulkarni]

They also paid Taxes on Fixed Deposits interest which never existed. Indian Tax Department is really happy about it 😂

[ZeroSOFInfinity]

One thing I learned so far from the videos - no matter what you do, fraud will EVENTUALLY caught up with you.

[johniii]

I worked briefly for them in business development in US. I left after I think 2 months (despite a great salary) because it quickly became obvious they were shady AF in business practices and the numbers.

[vsonic]

If you manage to keep $1.5B, I think 7 years worth in jail.

[nextinstitute]

I liked your video before even seeing it. Your regional spread is great!

[ShubhamPatil-cbdk]

SATYAM - MAYTAS
Can't believe they were able to pull this off.

[drajitshekher]

An interesting thing was that as far as I know the siphoned off money was never recovered.

[Annapurnaguttedar-dryn]

This is why you first conquer your greed, they were already billionaires with their legally earned wealth but nope they had to be obsessed with money .

[isbestlizard]

Adani is definitely the Enron of India :D

[benjamoo]

Find a wall street millennial video where he doesn't say "hand over fist" 😅

[ManoElMacho]

Its so funny how certain types of people are known for certain things. How pathetic

[upstate]

Seems like there are more non legit big businesses in the world than legit.

[NotKimiRaikkonen]

A scam? In India?
Say it ain't so.

[charleschenhua]

We also need diversity and inclusion in crime