Satyam case goes to Frauds Office, CAs chief for action

Satyam case goes to Frauds Office, CAs chief for action
PTI
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First Published: Wed, Jan 07 2009. 03 11 PM IST
Updated: Wed, Jan 07 2009. 03 11 PM IST
New Delhi: The Government on Wednesday said the Satyam Computer financial wrong-doing case would be referred to the Serious Fraud Investigation Office, while asking the Registrar of Companies in Hyderabad to submit a report on the IT firm by 14 January.
The Government also said stern action under the law would be taken against the guilty after verifying the facts.
“We have received communication from Ramalinga Raju. Facts need to be verified. We have communicated the message to the Registrar of Companies in Hyderabad and given them a deadline of January 14, by when we will have all the information,” Corporate Affairs Minister P C Gupta told reporters here.
He said the case would be referred to SFIO, once facts are verified.
Pointing out that the role of company secretaries, auditors and finance officials in Satyam Computer is being looked into, Gupta said, “Stern action would be taken under the law ... No leniency would be shown if they are found guilty.
He said all the regulators have been asked to take coordinated action and ministry officials have been instructed to handle the case on priority.
ICAI for severe punishment for Satyam CAs and auditors
The apex body of Chartered Accountants ICAI said any member of the body found guilty in the Satyam financial wrong doings would be severely punished and the auditors could even be barred from practising, for the lifetime.
“We will ensure that to any person who has not worked according to our standards and our expectations, severe punishment be given,” ICAI President Ved Jain said.
Satyam’s Auditors, PriceWaterHouseCooper (PWC), declined to comment on the issue and did not entertain any query.
Following a letter from Satyam Chairman Ramalinga Raju, who accepted that he had misrepresented facts in the company’s balance sheet, the role of auditors and accountants for the company has also come under scanner.
In fact, the Ministry of Corporate Affairs announced that role of directors and audiotrs at Satyam will be scanned by ICAI and the apex body of Company Secretaries - ICSI.
Jain also pointed out that before the body takes any action against the members involved in the “fraud”, it needs to collect all facts and information. “So we are looking into that and we will start our proceedings,” he added
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First Published: Wed, Jan 07 2009. 03 11 PM IST