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'Regulatory bodies ignored warnings on Satyam'

January 09, 2009 17:02 IST

Former Department of Economic Affairs Secretary E A S Sarma on Friday claimed that the regulatory agencies, including SEBI, had ignored his warnings about the financial irregularities committed by Satyam [Get Quote].

Sarma said, "It was found that there were accounting irregularities in Satyam in 2001 and an inquiry was ordered in 2002. But there was no progress on that front."

Sarma, who took premature retirement from the Indian Administrative Service in 2001 and also acted as the Principal of Administrative Staff College of India in Hyderabad here, said he had written a letter to the Economic Offences Wing in the Ministry of Company Affairs and SEBI explaining the nexus between the government and Satyam in various land deals.

"For example, the government had allotted 50 acres of land in Kapula Uppada village near Visakhapatnam favouring Satyam at a very nominal price of Rs 1 crore a acre, while the market price per acre is about Rs 4 crore to 6 crore (Rs 40 million) to 60 million)," Sarma, now Convener for Forum for Better Visakha, pointed out.

"We have lodged complaints with all the agencies, including the AP Chief Secretary," he added. He further said the company had violated all the legal norms, including costal zone regulations, archaeological legislations, municipal laws etc.

"We demand of the government to suspend all the work orders and contracts entered into with Satyam/Maytas forthwith until inquiry is completed and the culprits are booked," Sarma said.

He further said he had also raised the issue of PwC, a tainted auditor, who also audited the accounts of Global Trust Bank, with the Company Affairs Ministry officials, but to no avail. 

The Satyam fiasco: Complete Coverage

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