The confession of Mr.Raju to the effect that he has shown bogus account in respect of SATYAM as if it is running in profit while actually it was running in loss, itself appears to be fraud and this is also a method of cheating the public. He has had a group of persons including the famous Rajasekara reddy and they arrived at a plan to create a panic among the share market and reduce the value of SATYAM shares and this group bought all the shares at cheaper rates.When it is notified the SATYAM will be auctioned, there are many competitors to take that along with the huge loss . How could this ?
Ramalinga basically had an idea to create some phoney fake accounts & subs, attract it in the name of Satyam IT....and then basically invest it in real estate. And he (Ramalinga) also invested a good share of Satyam's operations into real estate holdings.
Ramalinga's plans backfired because real estate took a HUUUUUUUUUGE hit, and when people started asking back their money, he didn't know what to say or do.