Investigation into the multi-crore accounting fraud by Satyam Computer former chairman B. Ramalinga Raju and others revealed that the accused filed false Income Tax returns with fraudulent and dishonest intentions of cheating shareholders thereby, causing wrongful loss to the company.
The multi-disciplinary team of the Central Bureau of Investigation has brought out evidence against the accused on allegations of filing false IT returns. The CBI filed a 30-page charge-sheet, citing 32 documents and 26 witnesses, before the designated court, XIV additional chief metropolitan magistrate court, here on Thursday.
The accused including Mr. Ramalinga Raju, B. Rama Raju, Chief Financial Officer Vadlamani Srinivas, vice-president (finance) G. Ramakrishna and auditors of Pricewaterhouse S. Gopalakrishnan and Talluri Srinivas were charged under sections 120-B (criminal conspiracy), 409 (criminal breach of trust), 420 (cheating), 467 and 468 (forgery for the purpose of cheating), 471 (use of forged documents as genuine) and 477-A (falsification of accounts).
The fresh charge-sheet, with entire documentation running into 3,552 pages, is in continuation of the charge-sheets filed by the premier investigating agency on April 7 and November 24.
Inflated revenue
The CBI alleged that the accused inflated the revenue of the company by infusing false and fictitious sales invoices and shown the amount received and deposited as fixed deposits in various scheduled banks.
The inflated revenue and inflated income in the form of interest on the non-existent fixed deposit led to creation of an additional tax liability to the tune of Rs. 526.37 crore on the company.
Taking recourse to the provisions of Section 90 and 91 of the IT Act, the accused showed higher tax remittances in foreign countries to get relief from the tax charged in India.
Correspondingly, the non-existent income towards interest on non-existent fixed deposits was not included while filing Income Tax returns in foreign countries and no additional tax was paid.
In doing so, higher tax remittances to the tune of Rs. 329.58 crore were shown as if paid in overseas tax remittances while filing tax returns in India, the CBI said in a press release.
By this modus operandi, the accused could not completely set off the additional tax liability created on the company.
Therefore, the accused dishonestly made payments by way of self-assessment tax and in some cases not making lawful claim for refund of TDS.
The squandering of money through fictitious sakes and interest on non-existent fixed deposits made the company to suffer an estimated loss of Rs. 126.57 crore.
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