The Rajus have been arrested, contrary to my earlier prediction. More than anything else, it was the enormous attention the case received, allied with the shock effects on Dalal Street, that caused the authorities to act. The big question, though, remains unanswered: is Ramalinga Raju an isolated corporate criminal, like Robert Maxwell or Ken Lay, or part of a wider trend of lies and deceptions that are the grim underbelly to the India Shining story?

Decline and Fall

If you thought that Ramalinga Raju's bizarre attempt to use Satyam's money to rescue his sons' failing businesses made him the Indian Gerald Ratner, take a look at this.

It seems that the businessman who told me last week that corporate governance in India was even worse than in the United States was right. The difference is that in the US, people responsible for fraudulent accounting practices go to jail. Raji claims that he will "submit himself to the laws of the land", but whether the police will act remains to be seen.