CBI files charge sheet regarding false income tax returns in Satyam Scam case

The Central Bureau of Investigation has filed a charge sheet today before the ACMM Court (XIV), Nampally, Hyderabad after completion of further investigations in the Satyam Scam case against the then Chairman, the then Managing Director, the then C.F.O. and the then Vice President (Finance), all of M/s Satyam Computer Services Ltd. and the then two Auditors of a Bangalore based private company 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) of the Indian Penal Code. The 30 page charge sheet filed citing 32 documents & 26 witnesses. The entire documentation runs into 3552 pages. 
 
Earlier, CBI has filed its first charge sheet on 07.04.2009 and a supplementary charge sheet on 24.11.2009. 
 
In this charge sheet, CBI has brought out evidence against the accused on the allegations of filing false Income Tax Returns with fraudulent & dishonest intentions of cheating the Shareholders and thereby causing wrongful loss to M/s Satyam Computer Services Ltd. (SCSL). The accused have inflated the revenue of the company by infusing false & fictitious sales invoices and shown the amount received & deposited as fixed deposits in various scheduled banks. Due to this inflated revenue and the inflated income in the form of interest on the non-existent fixed deposits, an additional tax liability to the tune of Rs. 526.37 crore was created on the company. Then by taking recourse to the provisions of Section 90 and 91 of the Income Tax Act., the accused in furtherance of the conspiracy have shown higher tax remittances in Foreign Countries to get relief from the tax chargeable in India. Thus they achieved by showing Income on the non-existent revenue as part of the income of the overseas branches of M/s SCSL while filing Income Tax Returns in India. Correspondingly while filing the Income Tax Returns in foreign countries, the non-existent income towards interest on non-existent Fixed Deposits was not included in the income declared to the tax authorities in those countries and no additional tax was paid. In doing so the higher tax remittances to the tune of Rs. 329.58 crore were shown as if paid in overseas tax remittances while filing returns in India. 
 
Using this modus operandi, the accused persons could not completely setoff the additional tax liability created on the company and therefore, in furtherance of the conspiracy, the accused persons who were entrusted with the property of M/s SCSL have dishonestly made tax payments by way of self assessment tax and in some cases not making lawful claim for refund of TDS. The accused persons squandered the money in violation of the trust bestowed on them by the share holders of the company in order to conceal their fraudulent & dishonest deeds of inflating income on account of fictitious sales and interest on non-existent fixed deposits by violating the existing law & corporate ethics have made the company M/s SCSL to suffer an estimated loss of Rs. 126.57 crore.