The head of one of India’s biggest outsourcing groups has confessed to fixing the company’s books in a $1bn fraud described as the country’s “Enron”, reports the FT. B. Ramalinga Raju, chairman and chief executive of Satyam Computer Services, which is also listed in the US, resigned Wednesday after admitting he had manipulated the accounts for “several” years to show hugely inflated profits and fictitious assets. Rau’s disclosure will alarm hundreds of top international companies that entrust critical data and computer systems to Indian outsourcing companies. It could also bring lawsuits in the US against Satyam’s auditors, PwC. See more background here.
