New Delhi: India has requested authorities in the United States not to take any action against scam-hit Satyam as it would amount to punishing shareholders of the IT company for a second time.
"Sebi has marshalled a request (to US Securities
Exchange Commission) and we are monitoring them. On the political level such signals can be sent and we have already sent them," Corporate Affairs Minister Salman Khurshid told, when asked whether the government has taken up the issue of Satyam with the US authorities.
Satyam Computer Services, now Mahindra Satyam, can face punitive action in the US as the company's shares were listed and traded on American bourses. It is also contesting about a dozen class action suits in US courts which could entail a heavy penalty on the company.
Also, the company can face action by the US Securities Exchange Commission.
"The case has been laid out quite well. And the case being that nothing should actually punish the shareholders a second time over...because any fine imposed on the company will inevitably hurt the shareholders", Khurshid said.
The American administration would understand the issue, the Minister hoped. "But I am keeping my fingers crossed," he said.
Satyam founder B Ramalinga Raju's disclosure of accounting fraud on January 7, 2008, is reported to have resulted in a loss of around Rs 14,000 crore to the shareholders.
The company is appointing an internal team to start with, Singhania said, adding, it would gradually recruit experts for the real estate business.
The realty sector has caught the fancy of quite a few textile companies, including Bombay Dyeing, Century Textiles and Alok Industries.
Since most textile mills in Mumbai have shifted operations to the hinterland of Maharashtra or Gujarat, the land thus freed is being used by real estate developers for building residential and commercial complexes.
PTI
First Published: Sunday, January 10, 2010, 14:07