The Institute of Chartered Accounts of India (ICAI) has found Satyam's former chief financial officer Srinivas Vadlamani guilty of professional misconduct after two years of investigation into the Rs 8,000-crore Satyam fraud.

The ICAI had set up a special disciplinary committee including six members in order to investigate what is India's biggest corporate scandal. ICAI President G Ramaswamy has compiled its conclusion into the case and filed a repot on January 3.

He said that, "They have found both the accused guilty of professional misconduct. We will proceed to take necessary action. We have also informed them about these findings." The committee has found the accused guilty on three counts failing to conduct proper due diligence of the accounts, gross negligence of their work and violating the ICAI's code of conduct. The regulator has been investigating the scandal since January 2009. the body has already sent out notices to several persons relating to the case.

The regulator is also planning to impose a financial penalty on two involved persons. It is also considering banning the two from continuing their professional services in the field. Srinivas Vadlamani was CFO of the Satyam Computer Services when its founder chairman B Ramalinga Raju admitted to allegations that the company manipulated its account books and inflated balance sheets.