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Looking Back At The Satyam And Sahara Scandal: A Legal Scrutiny

Sejal Choudhary, B.A. LLB (Hons.), Jindal Global Law School


In recent years, the relationship between management and ownership has become the base of a modern corporation. Corporate governance entails a set of relationships amongst the company’s stakeholders which further provide the structure which sets the company’s objectives and the very means to achieve them. While companies globally are acknowledging the importance of a good corporate governance structure and its impact on their operational value, India is way behind in the standards of its corporate governance structures. One of the biggest failures of corporate governance in India was the infamous Sahara Scam. The aggressive regulatory conflict between SEBI and the Sahara Group for almost 5 years exposed an unimaginable scale of unethical operations that the Sahara Group was carrying on. Moreover, the importance of ethics and corporate governance was also brought into the limelight by the Satyam Scandal, an unforgettable corporate accounting fraud that undermined the integrity of financial reports and the Indian economy. Ultimately it is the investors, whose trust was eroded and lost in this corporate battle fuelled by human greed. Both these cases are a testament to the fact that, although companies may not necessarily be rewarded for their socially responsible actions, irresponsibility never comes without a price. This research paper taps into the pitfalls of Companies Law that essentially aided the two biggest corporate scandals in India.

Keywords: Sahara Scam, Satyam Scandal, SEBI, Satyam Scandal, Companies Act, Corporate Governance.

Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878


Accessibility: Open Access

License: Creative Commons 4.0

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​All research articles published in The Indian Journal of Law and Legal Research are fully open access. i.e. immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited.


The opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of the IJLLR or its members. The designations employed in this publication and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IJLLR.

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