Zeenews Bureau
New Delhi, Jan 07: Terming the Satyam Computer
financial fraud as "mind-boggling", Andhra Pradesh Chief
Minister Y S Rajasekhara Reddy on Wednesday said his government would order a CB-CID inquiry into the "fudging" of accounts and do
"whatever is needed to be done".
"The total figures are really mind-boggling," and as per
the statement of Ramalinga Raju, the "fudging" of accounts was
a "fraud", Reddy told a press conference when asked to
comment on the collapse of the Hyderabad-based IT company.
"We will ask the CB-CID (Crime Branch-CID) to hold an immediate preliminary
inquiry to look at the criminal angle into the entire
episode,"
he said.
When asked why not Raju be arrested as per his own
statement, Reddy said, "That is what I am trying to tell. We
will take every possible step. Whatever is needed will be
done".
The Chief Minister said that he would also ask his
officials to look into various problems and issues concerning
this episode.
Observing that Satyam and Maytas were two different
entities, Reddy said that while Raju owned very little stake
in Satyam, the company employed over 53,000 people and the
government would have to look into every aspect.
The Chief Minister said Hyderabad Metro Project and the
Machilipatnam Port Project have been awarded to Maytas.
Raju, founder-chairman of India's fourth largest IT
firm Satyam, today revealed that balance sheet of Satyam had
been inflated and that he would subject himself to the laws of
the land.
Centre to refer Satyam case to SFIO
The union government has said it will refer the case of financial bungling by Satyam Computer Services to Serious Fraud Investigation Office (SFIO) after verifying the facts and stern action under the law will be taken, if facts are correct.
"Case will be referred to SFIO once facts are verified. If they (facts) are genuine then it (the development) is shameful," Corporate Affairs Minister P C Gupta told reporters here.
He said if facts regarding financial wrong-doing by Satyam are found correct, stern action will be taken as per the law.
Gupta also said his ministry is in constant touch with the market regulator SEBI and a coordinated action with the watchdog will be taken.
Ex-MP threatens legal action
Former BJP Parliamentarian and
president of the city-based Investors' Grievances Forum, Krit
Somaya has threatened to file a criminal complaint against
promoters and auditors of the Satyam Computers.
"Criminal complaint is being filed against Satyam
promoters and auditors with the Economic Offences Wing (EOW)
of Mumbai Police," Somaya said in a statement here today.
Bureau Report