Abstract

The case discusses the rise and subsequent fall of one of the visionary leaders in the Indian IT sector, Ramalinga Raju (Raju). US-educated Raju founded Satyam Computers Services Limited (Satyam) and under his leadership, the company grew to become one of the leading IT services companies in the world. In an announcement that surprised the IT and investor communities both in India and across the world, Raju confessed to a major accounting fraud that marked his fall, drawing comparisons to Bernard Madoff. The case examines in detail the inception and growth of Satyam, vision and leadership skills of Raju, the problems Satyam faced due to growing competition, the Maytas fiasco and the events leading to confession of accounting fraud by Raju. The case concludes with a discussion on the events that occurred after the confession, and the reasons that led to the fall of Raju.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Study the inception and growth of Satyam
• Analyze the importance of visionary leadership for the growth of a company
• Examine the importance of having a strong board and governance structure
• Understand the reasons that led to the fall of Raju
• and Appreciate the importance of ethical leadership.

Keywords

Satyam Computers, Maytas Properties, Maytas Infra, Ethical Leadership, Ramalinga Raju, Bernard Madoff, Network of Circles, Entrepreneurship, Accounting Fraud, Corporate Governance, Breach of Trust, Class Action Law Suits, Board of Directors, Whistle Blowing, Promoter Holding