Satyam scam an aberration, new Companies Bill soon: Govt

Terming the nearly Rs 10,000 crore scam in Satyam Computers as an aberration, the government on Thursday said the proposed new Companies Bill provides more stringent provisions to avoid such frauds in the future.

Terming the nearly Rs 10,000 crore scam in Satyam Computers as an aberration, the government on Thursday said the proposed new Companies Bill provides more stringent provisions to avoid such frauds in the future.

HT Image

"Government proposes to introduce the Companies Bill, 2008 as the Companies Bill, 2009, which seeks to have more stringent provisions in case of frauds by companies, their directors and auditors," Minister of Corporate Affairs Salman Khurshid said in Lok Sabha during the Question Hour.

On the timing of introduction of new bill, he said the government intends to introduce it in the current session of Parliament.

The report of investigation into the affairs of Satyam has been received from the Serious Fraud Investigation Office (SFIO), he said adding the CBI has also conducted its probe into the criminal liability arising from the events relating to the scam.

"All the concerned persons have been arrested except one and prosecution has begun against the guilty," Khurshid said.

Satyam scam involved forgery and manipulation of computer programmes, he said adding that the new Bill seeks to address all such issues.

"Satyam scam is an aberration and the events are specific to the company in question. No other scam of this nature has come to notice since then," he added.