Satyam prosecution this month: Khurshid

The Serious Fraud Investing Office (SFIO) will prosecute founders of Satyam Computer Services for their involvement in multi-crore financial fraud this month, corporate affairs minister Salman Khurshid said.

“I know it has been delayed by some time, but SFIO is dedicatedly pursuing the matter and it is in the final stage … the agency would prosecute the case this month for sure,” Khurshid said. “There could be a case of siphoning of funds from Satyam to other entities, we are looking into it and it is tough to say anything on that issue right now,” he added.

The Central Bureau of Investigation (CBI) is searching for evidence of fund diversion at Satyam Computer by founder B Ramalinga Raju and has dispatched teams to the US, UK, Mauritius, Singapore and Belgium for investigations.

Also, the Institute of Chartered Accountants of India (ICAI) has found four auditors of Price Waterhouse, two offices of PW and two top executives of Satyam “prima facie guilty” of professional misconduct.

The SFIO is looking to start proceedings on more than 30 charges under the Companies Act, while the CBI will be acting on five or six charges involving criminal offenses under the penal code which may include fund siphoning.

The MCA is also working on analysing issues relating to starting a new exchange for smaller firms. “We have asked Sebi if there is a requirement of a separate exchange for small and medium enterprises, they are discussing the idea with other stake holders, lets see if that exchange is required,” Khurshid said.