Govt of India orders probe into Satyam subsidiaries

NEW DELHI, INDIA:Satyam Computer Services got a severe blow on Thursday as the Ministry for Corporate Affairs (MCA) ordered inspection of books of accounts of eight Satyam Group companies under the provisions of the Companies Act.

The Ministry also asked the Institute of Chartered Accountants of India (ICAI) to take action against the auditors as per the norms, said the Minister for Corporate Affairs, Prem Chand Gupta.

“Inspection has been ordered to examine violations under Section 209A of the Companies Act,” the Minister said.

The eight Satyam Group companies under probe are: Maytas Properties Ltd, Maytas Infrastructure Ltd, Satyam BPO Ltd, Nipuna Services Ltd, Knowledge Dynamics Pvt Ltd, Nitor Global Solutions Ltd, CA System ASP Pvt Ltd, and Satyam Venture Engineering Services Pvt Ltd.

Meanwhile, the ICAI informed the ministry that the Financial Reporting Review Board of the Institute has asked for the working document within three days from the auditors, said Prem Chand Gupta.

He also said that a team of SEBI and the Registrar of Companies is working together in Hyderabad and the Andhra Pradesh Government has promised all helps required.

Regarding the possibility of criminal proceedings against erring Satyam officials under the Companies Act, the Minister said that it was possible.

The minister also clarified that no leniency would be shown towards those who have been found guilty in the fraud committed at Satyam.