Regulatory and government authorities on Wednesday said they would launch a coordinated, multi-pronged probe into the Satyam case.
The ministry of corporate affairs has decided to refer the case of financial bungling to Serious Fraud Investigation Office (SFIO), while a team of Securities Exchange Board of India (SEBI) officials is expected to reach Hyderabad shortly to investigate into the matter. The role of auditors and directors would also be investigated.
“The case will be referred to SFIO once facts are verified. If they are genuine it is shameful,” Corporate Affairs Minister Prem Chand Gupta said.
“Once there has been a verification of the fraud, coordinated action will be taken along with the SEBI,” he added.
The Institute of Chartered Accounts of India (ICAI), the regulator for chartered accountants and auditing firms in India, said strong punitive measures, including lifetime suspension of permits to carry out business in India if found guilty of connivance in financial bungling.The corporate affairs Ministry has given Registrar of Companies a January 14 deadline for submitting a report on the statement sent by Ramlinga Raju.
“No leniency will be shown towards those who have been found guilty in the fraud committed at Satyam. But let us not presume anything as of now as it will affect not only the investigation but also will affect outcome,” Gupta said.
“We will ensure that to any person who has not worked according to our standards and our expectations is handed out the severest of punishments,” ICAI President Ved Jain said.
{{/usCountry}}“We will ensure that to any person who has not worked according to our standards and our expectations is handed out the severest of punishments,” ICAI President Ved Jain said.
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