Satyam Scam: How a Lie Collapsed India's IT Giant in 48 Hours, Shaking Global Markets

• On January 7, 2009, Satyam Computers founder Ramalinga Raju confessed to a $1.47 billion accounting fraud, causing its shares to plummet by 78% in a day.
• The scandal, compared to Enron, shattered investor confidence in India and globally, leading to massive losses in Mumbai and New York markets.
• The Indian government intervened to save the company and its thousands of jobs, eventually leading to its acquisition by Tech Mahindra.
• The fraud involved inflating income and profit figures for years, with the crisis escalating after Raju's failed attempt to acquire family companies.
• The Satyam scam highlighted critical corporate governance failures and led to stricter regulations, including the Companies Act 2013.

Why It Matters: Satyam scam exposed massive corporate fraud, underscoring the vital role of trust and governance in markets.