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It is for Centre to decide on Satyam: Andhra CM

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Press Trust of India Hyderabad
Last Updated : Jan 20 2013 | 7:17 PM IST

Andhra Pradesh Chief Minister Rajasekhara Reddy today said the state government has "nothing to do with" deciding the course of action on Satyam and it was up to the Centre to take a call.

"We have already written to the Prime Minister. It is for the Government of India to decide on the course of action with regard to Satyam. We have got nothing to do with that," Reddy told reporters here.

In his letter to Prime Minister Manmohan Singh, Reddy said a group of the likes of Infosys chief mentor N R Narayana Murthy, Azim Premji of Wipro and S Ramadorai of TCS should be constituted to manage the Satyam affairs.

"Our major and immediate concern is about the fate of 53,000 employees of the company. I have no doubt in my mind that the law will take its own course but as majority of the clients or customers of Satyam are Fortune 500 companies, they may be averse to do business with companies having fraudulent managements," Reddy said in his letter to the Prime Minister.

Meanwhile, Commerce and Industry Minister Kamal Nath had ruled out options for a government takeover of Satyam.

"The government is not looking to take over the companies. The corporate world must respond to this...It is not that the government should respond to this. The Government should look at only the regulatory part of it," Nath said yesterday.

He said the Satyam incident is an isolated case and would not damage the country's image among global investors.

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Besides, Infosys HR Head T V Mohandas Pai emphasised that the Satyam fraud would not shake global clients' faith in Indian IT companies.

"(The) Satyam fraud is an aberration ... I don't think it would shake

clients' faith in other Indian IT companies. But the level of due diligence is sure to go up (and) in fact that would overtake other considerations," Pai said.

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First Published: Jan 08 2009 | 1:24 PM IST

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