Satyam Computer Services, the Indian IT services firm rocked by financial scandal in 2008 and rescued by Tech Mahindra this April, has slipped into deeper trouble following new charges made by India’s Central Bureau of Investigation. The charges have been filed against former chairman Ramalinga Raju – who was detained in January on charges of cheating and forgery after admitting he had manipulated the company’s accounts – and nine other people who have not been named.

The charges state that the alleged fraud at Satyam was larger than initially admitted by Raju and could total 118.8 billion rupees (£1.6 billion), against the 71.4 billion rupees previously stated. Allegations include using forged board resolutions to raise loans, the creation of fake customers and invoices, and acquisitions of land and property made with money taken illegally out of the company.

The new charges will be a blow to the recently formed company, Mahindra Satyam, which has been rebuilding the Satyam customer base and market confidence since the acquisition in April.

Speaking recently, Mahindra Satyam president Atul Kunwar said customer attrition had stopped and that the company was adding clients, including General Electric and Cisco Systems. Mahindra Satyam declined to comment on the new charges.

Source: MCN Direct Newswire