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Government promises strict action
January, 09th 2009

Government promised "strictest action" against those involved in the Satyam fraud and said any director or functionary involved in the scam would be punished, even if they have resigned. And the company's auditor, Pricewaterhouse, also seems to be headed for trouble as the Institute of Chartered Accountants of India (ICAI) is planning to issue a show-cause notice after referring the case to its disciplinary committee.

"Action would be taken against all those involved auditors, directors who are still there with the company or were with it earlier, company secretary or any executive. Strictest action would be taken," Corporate Affairs minister Prem Chand Gupta told.

The ministry has asked the Registrar of Companies (RoC) to submit a report by January 14 after which it will decide on the next course of action, that could include handing over the investigation to the multi-disciplinary bodySerious Fraud Investigation Office.

Gupta said his ministry was in touch with market regulator Sebi. "A coordinated action from the ministry, Sebi, ICAI, Institute of Company Secretaries and other government agencies would be taken so that the whole issue can be taken to its logical conclusion," he said.

The corporate affairs ministry was looking into the statement sent by Ramalinga Raju to the stock exchanges. "If the message was true and a fraud has happened, it is shameful," Gupta said.

 
 
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