Business Daily from THE HINDU group of publications
Saturday, Jan 10, 2009
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Business Daily from THE HINDU group of publications Saturday, Jan 10, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Corporate
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Corporate Governance Info-Tech - Software
“The issue is beyond fudging the balance sheet. The offences attract criminal breach of trust and cheating.” K.V. Kurmanath Hyderabad, Jan. 9 Why did Mr B. Ramalinga Raju, founder of Satyam Computer Services, choose to confess? Perhaps, he might have thought that it would not be long before his misdeeds were exposed. The other aspect the legal experts are considering is whether it would help escape with lesser penalties. A lot of thinking went into the decision to make a confession when things came to a pass — either he had to disclose or the possible valuation by suitors would have revealed it any way. Of all the options, confession was zeroed in on. Mr K.V.S. Sharma, Professor of Law at NALSAR University here, has felt that the confession made by Mr Raju is likely to get him immunity. He could be let off with monetary penalties. The section 24 (B) of Securities and Exchange Board of India (SEBI) Act says that if a person made “a full and true disclosure of the alleged violation”, the Centre may consider granting immunity from prosecution for any offence under this Act. Mr Nandigam Krishna Rao, a senior advocate, felt that the confession was of little consequence. “The issue is beyond fudging the balance sheet. The offences attract criminal breach of trust and cheating. The State Government can initiate criminal proceedings, keeping in mind the serious nature of the economic offence and future of thousands of employees,” he said. Confession is weak evidence, he pointed out. “This will also attract Company Law Board provisions. Investors and stakeholders could approach the Board’s intervention for possible appointment of a receiver to take care of the company operations with the help of employees,” he said Mr K. Sai Rama Murthy, who handles corporate litigations, said that the confession could not lessen the impact. “It provides no immunity. The criminal actions could attract punishments,” he felt. Satyam’s interim CEO, his team assess situation Rs 7,000-crore fraud ‘It was like riding a tiger’ More Stories on : Corporate Governance | Software | Satyam Computer Services Ltd | Economic Offences
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