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Govt will safeguard interest of Satyam employees

india Updated: Jan 12, 2009 20:38 IST
Pradip Kumar Maitra
Pradip Kumar Maitra
Hindustan Times
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The Union government is making all-out efforts to safeguard the interests of over 53,000 employees of the beleaguered IT major Satyam, said union minister of state at PMO Prithviraj Chavan.

Chavan, who was in the city to attend a sports event, said that the union government as concerned about the mega financial fraud and would take measures to prevent any recurrence of such an unsavoury incident. "Prime Minister Manmohan Singh and former finance minister P Chidambaram are reviewing the situation and we are hopeful that jobs of the employees are protected," he said. Chavan said it was a deliberate, conscious accounting and banking fraud committed by chief executive officer of the company. "The scam has forced us to review the regulatory system and we need to plug every loophole," he said and urged the investors not to panic as the government was doing everything to save their money.

According to Chavan, the country is facing heat of international economic recession apart from the internal security problem following 26/11 Mumbai terror attack and now the Satyam fiasco. He said that the government was taking steps to mitigate the effect of economic meltdown with the possibility of another stimulus package being rolled out to boost the economy.

Meanwhile, the Maharashtra Airport Development Company (MADC) managing director, RC Sinha, who resigned as chairman of Satyam-arm Maytas, was under fire for allegedly favouring Satyam while providing land at MIHAN at a throwaway price.

It was alleged that Sinha was instrumental in allotting 130-acre to Satyam at the special economic zone in MIHAN at just Rs 18 lakh per acre, much below the then prevailing market price of Rs 80-lakh per acre.

Sinha defended by saying that Satyam was allotted land in 2005, whereas he joined Maytas Infrastructure in October 2007. He claimed that Satyam deal had helped to push the MIHAN project. "I persuaded Satyam to invest at MIHAN when nobody was ready to come here," he pointed out and denied that there was any conflict of interest in his heading MIHAN and also being chairman of Maytas.

"After I retired as an IAS officer, I had specifically laid down a condition that I would be free to join other organisations as long as it did not clash with MADC," he claimed.

However, on the other hand, the Opposition leader in Nagpur Municipal Corporation (NMC) and a Congress leader, Praful Gudadhe-Patil demanded action against Sinha for favouring Satyam. He also asked for a thorough inquiry into all land deals in MIHAN project finalized by Sinha.