Melbourne/New Delhi: IT firm Mahindra Satyam has pulled out of the proposed $75 million project that would have created a software hub at Deakin University in Australia, says a media report.
“Mahindra Satyam has pulled the plug on a $75 million software hub at Deakin University that would have delivered 2,000 Geelong jobs,” Australian newspaper ‘Geelong Advertiser´ has reported.
Geelong is in the state of Victoria.
A spokesperson for Mahindra Satyam confirmed the development and added that the company would return the money given to it by the Australian government.
Attributing to a letter written by the company to the state government, the report said that the global financial crisis was forcing Mahindra Satyam to abandon the IT complex project at Waurn Ponds.
“The need to concentrate on an extensive internal restructuring program of our business precludes Mahindra Satyam from embarking on expansion projects of this kind,” the letter from Mahindra Satyam’s president of corporate affairs Sujit Baksi said.
The future of the project at Geelong became uncertain after the company’s (then known as Satyam) founder B Ramalinga Raju admitted in January this year of cooking up the account books and committing fraud at the IT firm.