India orders SFIO probe into Satyam scandal

New Delhi, Jan 13 (PTI) The Indian government Tuesday
ordered investigation into the Satyam scandal by the Serious
Fraud Investigation Office (SFIO), an entity that probes cases
of economic offences of grave nature.

"The SFIO will submit its report in three months,"
Corporate Affairs Minister Prem Chand Gupta told reporters
here.

The government ordered the probe by the SFIO after
receiving a report from the Registrar of Companies (RoC),
Hyderabad, which inspected the books of accounts of Satyam
Computer Services and eight other companies belonging to the
kin of the former chairman of the IT major, B Ramalinga Raju.

Corporate Affairs Minister Prem Chand Gupta said, "The
government has ordered the probe (by the SFIO) based on the
RoC report.

"The SFIO will be looking into the entire gamut of
irregularities and other related anomalies... the
(irregularities) in books of accounts and other acts of
commission and omission."

The investigating agency, he said, "(has) also been
asked to go into all aspects (and role of) directors,
promoters, Satyam company, auditors and all."

On the role of the regulator and regulation, the Minister
said, "This is an issue which is also being looked into by the
government. We will have detailed discussions on this."

As regards appointing more directors on the board of
Satyam, Gupta said Corporate Affairs Secretary Anurag Goel was
in constant touch with the board and "a decision (to appoint
more directors) will be taken without delay...as and when
required. We are working on that."

The government on Sunday appointed a three-member
board comprising HDFC Chairman Deepak Parekh, former Nasscom
President Kiran Karnik and former Securities Appellate
Tribunal (SAT) Presiding Officer C Achuthan to salvage Satyam
Computer.

Talking to newspersons after the first meeting of the
new board yesterday, Parekh had said that more directors were
likely to be appointed by the government.

The government, according to the order of the Company Law
Board (CLB), which disbanded the Satyam board, can appoint at
most 10 directors on the board of IT company.