Convicted and jailed in the infamous Satyam Computers embezzlement case Ramalinga Raju is known to employees of Brane Enterprises Private Limited as ‘Mentor‘.
Published Sep 03, 2024 | 3:00 PM ⚊ Updated Oct 10, 2024 | 9:27 PM
Representative image of a firm (iStock) with Brane's logo on it.
In April 2024, Ravi, an employee of a tech firm was among hundreds of staffers listening to Byrraju Ramalinga Raju’s closing remarks on Day 3 of Brane Transformation Partners Summit. The world may be familiar with Ramalinga Raju as a convict in the infamous Satyam Computers scam but Ravi and his colleagues know him as ‘the Mentor’.
Cut to September 2024, Ravi is grappling with financial uncertainty after being forced to take a ₹4 lakh loan. He’s now considering a gold loan to manage his EMIs. Similarly, another employee, Antony, sold his equity shares and took a gold loan to cover his expenses, while Rahul broke his Fixed Deposit (FD) to meet household needs and pay his daughter’s school and bus fees.
These three aren’t alone in their struggles. Over 1,500 employees across Bengaluru, Hyderabad and other parts of India were abruptly terminated from Brane Enterprises Private Limited on 2 August.
Among those affected is Mahaveer, a recent graduate who just started his career at Brane Enterprises Private Limited. With no salary paid, Mahaveer has returned to his hometown, joining the growing number of ex-employees facing severe financial distress.
The names of these employees have been changed to protect their identities.
South First spoke to several former and current employees at Brane Enterprises Pvt. Ltd., who pointed to a link between the firm and Byrraju Ramalinga Raju. More popularly known as ‘Satyam Raju’, he had confessed in 2009 to falsifying accounts at Satyam Computer Services.
In 2015, Raju and 10 others were convicted for their roles in the fraud case. Sources indicate that Byrraju Rama Raju, Ramalinga Raju’s son, is the owner of the company, with other family members serving as shareholders.
‘Mentor’ Byrraju Ramalinga Raju delivering the closing remarks at Brane Transformation partners summit in April 2024.
Documents, including financial statements verified by South First, reveal that Byrraju family members like Deepthi Byrraju and Rahul Raju Byrraju are shareholders in Brane Enterprises Private Limited.
Employees report that Ramalinga Raju is referred to only as the ‘Mentor’ within the company and is involved in developing NSL Runtime, a framework for building enterprise solutions in multiple Indian languages without requiring programming expertise. This framework is based on a conceptual model patented by Ramalinga Raju.
Data from Tofler, a business information platform, reveals that Brane Enterprises Pvt. Ltd. was incorporated on 4 July 2020, in Rangareddy, Telangana. For the financial year ending 31 March, 2023, the company reported operating revenues between ₹100 crore and ₹500 crore.
Its EBITDA increased by 18.99 percent over the last year, and its book net worth saw a 57.32 percent rise. The last reported Annual General Meeting (AGM) was held on 26 December last year, with directors identified as Anand Gajapathi Raju Penumetcha and Ramya Priya Rudraraju.
Employees first noticed trouble in April 2024 when their March salaries were delayed by a few days. In late 2023, the company went on a massive hiring spree, recruiting candidates from top institutions like IITs, IIMs, and NITs, along with senior management from abroad.
Timeline of events as employees struggled with salary delays at Brane Enterprises Private Limited linked to ‘Satyam Raju’ family.
This rapid expansion allegedly doubled the headcount within six months.
Further concerns arose when taxes were reportedly paid late to the IT department, and Form-16s were submitted after the 31 July, 2024 deadline.
Employees were instructed to file their returns based on an IT computation sheet. Moreover, PF contributions have reportedly not been credited since March 2024.
Only 45 percent of employees’ May salaries have been paid, that too in staggered instalments and split into as 25, 10 and 10 percentages in that order.
A leadership operations email dated 22 August 2024 acknowledged the payment delays and promised that dues would be cleared by 2 September, based on improved cash flow visibility.
Timeline of events as employees struggled with salary delays at Brane Enterprises Private Limited linked to ‘Satyam Raju’ family.
The email emphasised that Brane Enterprises had fulfilled its financial obligations for seven years and attributed the current crisis to unforeseen challenges.
As the crisis deepens, affected employees and their families are left in financial turmoil, with little hope of resolution in sight.
Some employees have approached the Labour Department over unpaid salaries since May. However, on 26 August, Brane Enterprises Pvt. Ltd., informed the department that the correct forum for resolution was the civil court, as the complainants were managers and supervisors earning higher salaries than the prescribed limit under the law. The company also claimed it had no offices in Bengaluru, challenging the jurisdiction of the Labour Department.
Contrary to this claim, Brane Enterprises’ website lists a Bengaluru office at South Tower, Vaishnavi Tech Park, Ambalipura Village, Varthur Hobli, Bengaluru, Karnataka.
South First met Dr HN Gopalakrishna (IAS), Commissioner of Labour as well as Somanna, Deputy Labour Commissioners (Bengaluru DLC-2) to understand the next steps in addressing this crisis.
“Both the aggrieved parties approached us and we also did a conciliation meeting. From the company, a junior level staff attended the proceedings. They have requested some time to settle the dues. The competent authority will take further course of action. We will try to solve the issue faced by people who come under workmen category,” Somanna told South First.
A significant blow to the company’s finances may have come from a SEBI order from November last year. The Securities and Exchange Board of India (SEBI) directed six entities, including former promoters of Satyam Computer Services, to disgorge unlawful gains of ₹624 crore, with 12 percent annual interest over 15 years, bringing the total amount to over ₹1,747 crore.
South First attempted to reach key members of Brane Enterprises, including Byrraju Ramalinga Raju, Adetya Agarwal, and Bhavani Shankar, on two different days but received no response. Emails sent to the leadership operations team that has been communicating with the distressed employees, also went unanswered.
This copy will be updated if and when there is a response to our queries.
(Edited by Neena)
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