SFIO probe into Satyam to cover 350 entities

After Maytas Infra and Maytas Properties,over 320 more companies and 20-25 individuals have now been brought under the compass of the Serious Fraud Investigation...

Written by ENS Economic Bureau | New Delhi | Published: February 7, 2009 12:33:45 am

After Maytas Infra and Maytas Properties,over 320 more companies and 20-25 individuals have now been brought under the compass of the Serious Fraud Investigation Organisation’s (SFIO) ongoing probe into the Satyam case. Addressing the media here today,corporate affairs minister Premchand Gupta said,the SFIO investigation has now been extended to these companies and individuals,which have direct links to the Rs 7,000-crore Satyam scam. “Price Waterhouse,Bangalore is also covered by the SFIO investigation initiated by the government,” he added.

Apart from these entities,probe into the books of about 150 other companies — listed and unlisted — has also been launched under Section 209-A of the Companies Act,which entails inspection of books of account of companies by the Registrar or any other designated government official. Investigation in the companies related to the Satyam case,on the other hand,has been initiated under Section 240 of the Companies Act for production of documents and evidence.

The minister also announced that Kiran Karnik,one of the members of the new Satyam board,has been appointed the board chairman. The board had just yesterday appointed AS Murthy,an old Satyam hand,as the new chief executive officer of the company.

Gupta refused to identify any of the companies involved in the Satyam case and said it would be premature to reveal any such details. He,however,mentioned that Educomp,a company that has been in the news lately for fudging their balance sheet,is one of the companies being probed under Section 209-A.

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