Unveiling The Satyam Scandal: Corporate Fraud And Regulatory Oversight

Srishti Sharma, Amity University, Noida

Aikansh Jain, Amity University, Noida

ABSTRACT:

The Satyam scandal is a key event in the history of corporate frauds which casts a big impression on the corporate sectors not only in India but also all around the world. This research paper incorporates the complexities of the Satyam scandal, exploring its unfolding, causes, regulatory monitoring along with the lessons learned from the entire scandal. This study also intends to put a light on the events which led to the scandal and what all tactics were used to distort the financial accounts of the company by an in-depth review of various sources.

This paper gives a view of the Satyam scandal by providing a backdrop and also highlighting the people involved including the top executives, auditors, regulatory bodies along with the founder i.e. Ramalinga Raju. The unravelling of the scandal by charting the series of events leading to the revelation of the fraudulent practices and the resulting collapse of the company. The roles of auditors, in particular the Price Waterhouse (PW), and their involvement in the entire scandal are scrutinized in this paper.

An in depth examination of the regulatory aspects of the Satyam scandal have also been made, including government interventions and legal proceedings. The effectiveness of the existing corporate governance structures and regulatory monitoring has also been evaluated, raising certain arguments regarding the need for improvements to prevent similar incidents in the future.

Concluding with a brief of lessons that were learnt from the scandal, this paper also provides an insight on the importance of transparency in corporate governance, ethical practices and maintenance of integrity. This study contributes to a wider understanding of the dimensions of a corporate fraud and also serves as a foreboding narrative for the businesses as well as the regulatory bodies around the world.