The beleaguered IT company, Satyam Computer suffered a major set on Wednesday (January 7) when its chairman B Ramalinga Raju relinquished his post. Ramalinga Raju admitted major financial wrong-doings executed over the years to inflate the profits of the company. Satyam Computer was recently involved in a major controversy over the acquisition of firms promoted by the Chairman's family.

 

Satyam which was supposed to buy Maytas Properties and Maytas Infra called off its acquisition offer following strong protest from investors and analysts. The protesters were agitated at the top management’s decision to bail out the cash-strapped infrastructure firms. Besides Ramalinga Raju, Satyam Computer Services managing director B Rama Raju also resigned from the board. As per analyst, Satyam is expected to face regulatory action in the US.

 

In a statement to the stock exchanges, Satyam informed that DSP Merrill Lynch has terminated its engagement with the company. Admitting his wrong-doings, Ramalinga Raju stated that he is prepared to subject himself to the laws of the land and face the consequences. The acquisition controversy has forced as many as four independent directors of Satyam to resign over the past two weeks. Securities and Exchange Board of India (SEBI) has ordered an enquiry into the whole deal.