The Hindu Business Line : Raju, Gelli share more than just mother tongue

HYDERABAD: Satyam's Ramalinga Raju and erstwhile Global Trust Bank's Ramesh Gelli shared more than a common mother tongue. They climbed quickly to the pinnacle of their careers and fell from grace with equal speed.

Both Mr Raju and Gelli symbolised the so-called “Telugu pride” in the corporate world and were considered visionaries in their respective fields of operation. They were heralded as institution-builders, but in the end their fall too was equally swift du e to a set of financial frauds.

Incidentally, Price Waterhouse was the auditors of both the institutions.

Ramesh Gelli was the chairman of Vysya Bank and later launched the country's first private sector bank Global Trust Bank in 1993-94 that was a phenomenal success.

In 2001, however, GTB was in turmoil and Gelli faced an ignominious exit as the head of the bank following a failed merger with the UTI Bank.

In 2004, GTB's net worth turned negative because of what were termed as “mismanagement and reckless lending practices.”

Mr Gelli also allegedly had a dubious relationship with stockbroker Ketan Parekh and the former faced the charge of price rigging.

The Securities and Exchanges Board of India found a nexus between Gelli and Parekh and in 2002 it imposed a ban on Gelli. Though he was re-inducted into the GTB Board in February 2004, Gelli could not last a month and faded into oblivion thereafter. - PT I

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