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Satyam scam rocks RS, Govt assures fair probe

Satyam scam rocks RS, Govt assures fair probe

Corporate Affairs Minister PC Gupta says Govt ready to discuss the issue.

Hyderabad: The Satyam Computer Services Ltd scandal rocked the Rajya Sabha on Tuesday with Members of Parliament asking the government what steps it was taking in the case.

The Opposition MPs alleged that the Central Government was shielding the Satyam's founder and former chairman B Ramalinga Raju.

Members also wanted to know why Pricewaterhouse Coopers was being allowed to practice in India after failing to find out the over Rs 7,800 crore accounting fraud in Satyam committed by Ramalinga Raju.

Corporate Affairs Minister PC Gupta assured the MPs that the government will order an investigation into accounts of companies being audited by Pricewaterhouse Coopers in India.

"The government is ordering investigations into the case. SEBI (Securities and Exchange Board of India) has ordered inquiry into accounts of top companies listed at BSE (Bopmbay Stock Exchange) and once the report are in, the government will see what is to be done," said Gupta.

Gupta also assured the MPs that the government is ready to discuss the Satyam scandal issue in the House.

"This is a very unfortunate case. All agencies are carrying out the investigations in a very coordinated manner. Yesterday the government has announced a CBI (Central Bureau of Investigation) inquiry into the case. We are concerned about the employees and share holders of Satyam," said Gupta.

However, Rajya Sabha Chairperson Dr Hamid Ansari ruled against the demand for a full debate. He said there were other agenda items that had to be taken up for debate by the House.

On Monday, the Centre gave the CBI a go-ahead to investigate the Satyam case following a formal request from the Andhra Pradesh government.

CBI is likely to form a special investigation team (SIT) to investigate the accounting scam.

A Hyderabad court, too, dismissed the bail applications on Monday of sacked auditors of Pricewaterhouse Coopers Gopalakrishnan and Talluri Srinivas, who are now in judicial custody in connection with Satyam scam.

The Sixth Additional Chief Metropolitan Magistrate D Ramakrishna upheld the prosecuting officer's submission that when investigation was on, their release on bail could affect the investigation.

On January 7, Raju had admitted that he had fudged the accounts of the company to the tune of more than Rs 7,800 crore and resigned.

Raju is already under custody and is being held in the Chanchalguda Jail in Hyderabad along with his brother Rama Raju.

first published:February 17, 2009, 12:23 IST