Several class actions have already started to surface in the United States

Having dissolved the Board of Directors of Satyam, placed the two founders in pre-trial detention and arrested the Chief Financial Officer of the group, the Government of India began yesterday to appoint a new Board of Directors, currently composed of only three members. A desperate attempt to take over the faster things in hand after the media and analysts already qualify "Indian Enron", a scandal so huge that it could undermine the national economy as a whole.

In a letter made public on Wednesday, the President and founder of the Group of 53,000 employees, B.R. Raju, indeed confessed that he and his brother, General Manager, client accounts "for several years", with reservations in cash that did not exist. Specifically, 94 of the liquidity of the Indian it services company appearing in the September accounts were thus completely fictitious... Placed end to end, the lies of the leaders represent a fraud of more than 1 billion euros, is the largest financial scandal have never shaken the India.

Accused of "criminal conspiracy" and "forgery and use of forgeries", two men are being questioned to try to clarify the matter. How could a group not only to the Bombay Stock Exchange, but also in New York lie so long without arousing any suspicion And, while he was also audited by a reputation as Pricewaterhouse cabinet... Mystery. But analysts already believe that, although Raju has said that only he and his brother were aware of the deception, the trial will also include the listener rather than the group. Several "class actions" have already started to surface in the United States.

From B.R. Raju, neither he nor his brother have personally benefited from the fraud, which only served to inflate the performance, to climb the course of the action and avoid any attempt to purchase. In a context where the leaders of Indian computer recorded until shortly the margins up to 50 per year, the two men had endeavoured to "erase" the slight slowdown in recent years. But Raju "which began with a marginal gap between real profits and those reflected in the accounts has reached unmanageable proportions that the operations of the company grew", explains in his letter. And the gap was "further accentuated by the fact that the company had to invest more to justify the growth of operations, thus increasing costs significantly."

In other words, the Raju brothers found themselves trapped by their own tip. The train derailed when Satyam attempted to buy out two companies of BTP belonging to the son of the founder, mid-December. Indeed, the shareholders revolted against this decision of the Board of Directors, forcing its cancellation. While everyone thought that it was an operation of nepotism, these redemptions were in fact "the last attempt to date to try to replace the shadow assets by real assets".

The crisis is such that the market capitalization of Satyam not total more than $ 330 million against 7 billion last summer. Considered one of the most successful groups of the country a few weeks ago, it seems condemned to die. More seriously, the scandal could affect any of the Indian computer industry, many Western clients being now likely think twice before outsource their operations in India. Cumulative impact of the attacks in Bombay, the Satyam case could even deal a hard blow to all foreign investment in the country.