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Govt won't let Satyam lay off
June, 01st 2009

Corporate affairs minister Salman Khursheed said that the government would not be a mute spectator to the layoff plans in scam-hit Satyam.

The minister hinted at the government's "active involvement" in the company's affairs even after its takeover by Tech Mahindra of Mahindra and Mahindra group.

"Layoffs -- this is something we are not going to turn a blind eye to as we have a relevant presence in decision making," the minister said, adding that his ministry would liaise with the company on this issue.

Taking a firm stand on the reported comment of Tech Mahindra CEO Vineet Nayyar that there were 10,000 surplus people in Satyam, Khursheed said, We will not allow the company to be taken for a ride. Our opinion and advice are important till things improve."

There were reports in a section of the media that Satyam was planning to lay off about 8,000 staff working in departments like marketing, HR and administration. Commenting on the possibility of similar frauds in the corporate world and whether Satyam was just the tip of the iceberg, Khursheed said, "I would call it a symptom of something wrong in the system. You need to treat the system, the root... otherwise the symptom may reappear. If I call it a tip, it means I am saying there is an iceberg."

Khursheed said probe ordered by his predecessor P C Gupta would be taken to its logical conclusion. "It will make my task easier," he added.

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