‘Regulator ignored warnings

Former Department of Economic Affairs secretary E A S Sarma today claimed the regulatory agencies,including Sebi,had ignored his warnings...

Written by Press Trust Of India | Hyderabad | Published:January 10, 2009 1:23 am

Former Department of Economic Affairs secretary E A S Sarma today claimed the regulatory agencies,including Sebi,had ignored his warnings about the financial irregularities committed by Satyam. Speaking to PTI,Sarma said,“It was found there were accounting irregularities in Satyam in 2001 and an inquiry was ordered in 2002. But there was no progress on that front.”

Sarma,who took premature retirement from the IAS in 2001 and also acted as the principal of Administrative Staff College of India here,said he had written a letter to the Economic Offences Wing in the Ministry of Company Affairs and the Sebi,explaining the nexus between the government and Satyam in various land deals. “For example,the government had allotted 50 acres in Kapula Uppada village near Visakhapatnam favouring Satyam at a very nominal price of Rs 1 crore a acre,while the market price per acre is Rs 4 to 6 crore,” Sarma,now Convener for Forum for Better Visakha,pointed out.

Sarma claimed he had also raised the issue of PwC,auditor of Global Trust Bank,with the company affairs ministry,but to no avail. Sarma wanted a probe into conflicting interests between various infrastructure companies,including Nagarjuna Construction and Nava Bharat,who are with Maytas in various projects,including Hyderabad Metro and Machilipatnam Port.

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