Penal provisions for corporate wrongdoing to be more stringent: centre

19 January 2009

Corporate affairs minister Prem Chand Gupta said that the government was making stiff provisions under the new Companies Bill, 2008, so that perpetrators of financial offences will not be allowed to get off the hook easily

He saiid that the number of crimes for which provisions of compounding under the present Act currently exist, are being significantly reduced. Compounding allows a company or its officers pay fine by pleading guilty of financial wrong doing.

Gupta also said monetary penalty and other provisions are being made more stringent.

Commwenting on the invetigations on Satyam, Gupta said that the SFIO investigation into Satyam suggests a nexus and eight comanies linked to its promoters.

At a press conference in New Delhi, Gupta said the government would leave no stone unturned to obtain full facts of the case, to ascertain the extent and nature of the irregularities that may have been committed relating to Satyam, within the company or in association with other companies and find out and punish the guilty

''You are already aware, the government has ordered investigation into the affairs of Satyam Computer Services Ltd by Inspectors drawn from the SFIO along with inspection into the books of accounts and documents of eight other companies connected with Satyam in various ways, he said.