Corporate India happy about 'quick' Satyam resolution

14 April 2009

The losing contestants for control of Satyam Computer Services Ltd may crib about lack of transparency about the bidding process, but everybody else – from jailed Satyam founder Byrraju Ramalinga Raju to Prime Minister Manmoron Singh - is impressed that the issue has been resolved quickly, as the controlling interest in the company was picked up by Tech Mahindra.

In Mumbai Monday, the prime minister expressed satisfaction at the manner in which the whole episode was handled, saying, "I am confident that our regulatory system has the resilience and strength to ensure that no such Satyams ever take place."

Disgraced founder Ramalinga Raju, in a message though his wife Nandini, expressed satisfaction and happiness that Tech Mahindra emerged the highest bidder to acquire the beleaguered IT company, which he had defrauded to the extent of over Rs7,000 crore.

Raju is lodged in Hyderabad's Chanchalguda jail under judicial custody since 10 January and faces investigation by multiple agencies including the Central Bureau of Investigation, the Securities and Exchange Board of India, and the Company Law Board. He is charged with criminal conspiracy, criminal breach of trust, cheating, forgery and falsification of accounts.

S Gopalakrishnan, one of the six co-founders and currently managing director and chief executive of rival IT firm Infosys, also expressed approval. "It is commendable that the government-appointed board at Satyam has been able to bring a closure to the uncertainty surrounding Satyam's future," he said in a statement.

"The government has addressed the issue quickly and responsibly. Overall, it is a good thing that the issue is put behind us," he added.