Greed for money, power, competition, success and prestige compelled Mr. Raju to “ride the tiger”, which led to violation of all duties imposed on them as fiduciaries—the duty of care, the duty of negligence, the duty of loyalty, the duty of disclosure towards the stakeholders. “The Satyam scandal is a classic case of negligence of fiduciary duties, total collapse of ethical standards, and a lack of corporate social responsibility. It is human greed and desire that led to fraud. This type of behavior can be traced to: greed overshadowing the responsibility to meet fiduciary duties; fierce competition and the need to impress stakeholders especially investors, analysts, share- holders, and the stock market; low ethical and moral standards by top management; and, greater emphasis on short‐term performance” . According to CBI, the In- dian crime investigation agency, the fraud activity dates back from April 1999, when the company embarked on a road to double-digit annual growth. As of December 2008, Satyam had a total market capitalization of $3.2 billion dollars.
Satyam planned to acquire a 51% stake in Maytas In- frastructure Limited, a leading infrastructure develop- ment, construction and project management company, for $300 million. Here, the Rajus’s had a 37% stake. The total turnover was $350 million and a net profit of $20 million. Raju’s also had a 35% share in Maytas Proper- ties, another real-estate investment firm. Satyam reve- nues exceeded $1 billion in 2006. In