The Hindu Business Line : Satyam probe: More entities under SFIO lens

New Delhi, Feb. 6 Price Waterhouse (Bangalore) and over 350 entities linked to Satyam Computer Services Ltd have now come under Serious Fraud Investigations Office (SFIO) scrutiny. The Minister for Corporate Affairs, Mr Prem Chand Gupta, disclosed this while announcing the name of Mr Kiran Karnik as the Chairman of Satyam.

Mr Gupta said that apart from Satyam, Maytas Infra and Maytas Properties, which are already under the SFIO scanner, the Government has now ordered an investigation into the affairs of 325 companies and about 25 individuals linked to Satyam.

“All these companies are related to Satyam or the Raju Group. The investigating authority would look into diversion of funds and other issues,” the Minister said.

These include the Hindu Undivided Family, auditors and other entities, an official said. The probe has been ordered under Section 240 A of the Companies Act which empowers seizure of documents by the inspector.

Earlier in January, the Government had expanded the scope of investigations being undertaken by the SFIO in Satyam and asked the agency to look into a possible ‘nexus’ between Satyam, Maytas Properties Ltd and Maytas Infra Ltd. The Minister had then said: “To uncover the facts relating to the events in Satyam, it is necessary to obtain information, records, books and papers from the above two companies (Maytas Infra and Maytas Properties).”

It had also ordered inspection of books of accounts of certain other Satyam Group companies, including 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.

Asked whether the newly appointed CEO of Satyam, Mr A.S. Murty’s move to offload about 40,000 shares in the company just days before an acquisition announcement, Mr Gupta said, “What’s wrong in that... even if you have shares, you will sell them.”

Inspections of books of companies: On more companies across the sectors being brought under scrutiny following the recent Satyam scam, the Minister said, “We are obtaining information on more companies. These inspections have been ordered under Section 209 A of the Companies Act, and are unrelated to Satyam probe.”

Even as speculations were rife that the Government has ordered probe into 150-odd companies, the Minister did not give any numbers. “I do not want to comment on individual cases,” he said.

Section 209 A empowers the Registrar of Companies to inspect books of accounts and other books and papers of every company. According to media reports, companies that are under the lens include Swaraj Mazda, Glenmark Pharma, and Madras Aluminium Company.

Related Stories:
SFIO moves court to quiz Raju brothers
Serious Frauds Office team examining Satyam records

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