What action can be taken against Raju and other board members, the auditors and the bankers for having failed in their basic duties?

 From the information available in the public domain, it appears that various offences have been committed, including the criminal breach of trust, cheating, forgery, falsifying records, criminal conspiracy and abetment.

Section 405 defines the offences of criminal breach of trust that is punishable under Section 406 IPC, with imprisonment of either description for a term which may extend to three years, or with fine, or with both. Section 420 defines the offence of cheating which is made punishable with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.

Section 463 defines the offences of forgery which is made punishable under section 465 IPC, with imprisonment of either description for a term which may extend to two years, or with fine, or with both. Section 120A defines the offences of criminal conspiracy which is made punishable under section 120B IPC.

Separately, under Section 24 of the Sebi Act, they can be imprisoned for up to 10 years and imposed a fine of up to Rs 25 crore. If they do not pay the fine, they can be jailed for a further term of anywhere between 4 months and 10 years.

Dear SuryaPrakash Sir,

The legal course action awaiting for CorporateFraud "(A)Sathyam" Raju, the auditors and other members involved in the scam for various offences under the Indian Penal Code, Indian Companies Act, Information Technology Act, Foreign Exchange Management Act and also violation of clause 49 of Sebi.



Since Satyam case amounts to criminal breach of trust, Raju and team can attract punishment under the Indian Penal Code (IPC) under various offences such as criminal breach of trust, cheating, forgery, falsifying records, criminal conspiracy and abetment.



Section 405 IPC says the offences of criminal breach of trust that is punishable under Section 406 IPC, with imprisonment of either description for a term which may extend to three years, or with fine, or with both. Section 420 defines the offence of cheating which is made punishable with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.



Section 463 defines the offences of forgery which is made punishable under section 465 IPC, with imprisonment of either description for a term which may extend to two years, or with fine, or with both. Section 120A defines the offences of criminal conspiracy which is made punishable under section 120B IPC.

 Separately, under Section 24 of the Sebi Act, they can be imprisoned for up to 10 years and imposed a fine of up to Rs 25 crore (Rs 250 million). If they do not pay the fine, they can be jailed for a further term of anywhere between 4 months and 10 years.



Then the Company Law Board (Section 397) and Economic Offences Wing (EOW) are empowered to freeze the assets of the promoters.



The Securities and Exchange Board of India (Sebi) als can initiate a number of actions against Raju under (Prohibition of Fraudulent and Unfair Trade Practices relating to the Securities Market) Regulations, 2003.

agree with shree sir

Thanx, shree and Y. Prakash Sir.

very useful information for me?

Can you elaborate more on this case.

as my query is