Note how the article cites "shareholder revolt" and other external pressured finally caused the offending admission. India should be proud that capitalism is working. Fraud will always exist, and no other system does as well as capitalism at ferreting it out.
This is the markets forcing discipline upon a company that was engaged in fraud. Markets are very good at doing this. Of course, reading the news one is bombarded with outliers and vivid examples. (recalling one of my professors, Richard Thaler's use of the term "availability bias", where the observer imputes a higher probability to an event given the extremeness of said event) Madoff certainly comes to mind, but that is the kind of event that no-one could have stopped given the people involved.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aQGbT39V3pZE&refer=home
Satyam, which means “truth” in Sanskrit, plunged in New York trading, after earlier dragging down India’s benchmark index, in a scandal described as “horrifying” by markets regulator C.B. Bhave. Raju’s reign unraveled in the past month as a shareholder revolt blocked the asset purchases, a World Bank ban kept Satyam from bidding for orders and four directors quit.
“This is a black day for India, the software sector and corporate governance claims,” Arun Kejriwal, founder of Kejriwal Research & Investment Services, said in Mumbai. “If at all there’s an event that could be the biggest setback for corporate India, it is this.”
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