Corporate India terms Satyam scam an ‘aberration’

‘Though Satyam-like situations may occur anywhere, the way the company was reviewed authenticates the robustness of the Indian system to face such challenges’

April 10, 2015 12:00 am | Updated 05:44 am IST - HYDERABAD:

Hyderabad:09/04/2015: Telangana: As discussed, please find attached the picture of Bipin Pendyala for your kind perusal. ---Photo:Special Arrangemnets

Hyderabad:09/04/2015: Telangana: As discussed, please find attached the picture of Bipin Pendyala for your kind perusal. ---Photo:Special Arrangemnets

Corporate India is of the belief that Satyam Computers scam is an aberration and the judgment in the case delivered by a court in Hyderabad on Thursday is unlikely to dent the credibility of the IT industry.

Describing it as an ‘aberration’, Assocham said, “Most of India Inc respects corporate governance.”

The industry has full faith in the judiciary. Though Satyam-like situations may occur anywhere in the world, the way the company was reviewed, authenticates the robustness of the Indian system to face such challenges, a statement from the apex industry body said.

The handling of the situation, particularly the manner in which Satyam Computer Services was rescued by the Centre and the Ministry of Corporate Affairs, is something that came in for praise from Hyderabad Software Enterprises Association (HYSEA).

“They handled it smoothly, very well,” declared HYSEA secretary Bipin Chandra Pendyala. The judgment, he said, will not have an impact on the credibility of the industry as “we have moved on…” To a query, he said there is nothing from a legal perspective that stops family members of those accused in the Satyam case from starting a venture. They may, however, face challenges while raising public resources.

FTAPCCI senior vice-president Anil Reddy Vennam said the Satyam scam would remain a ‘black spot’ for the industry. Apart from accentuating the significance of business ethics, the case has resulted in the government introducing a host of new compliance norms for the corporate sector. Conforming to the new requirements, however, is challenging for small businesses, he said.

Price Waterhouse, among the first to react to Satyam Computer Services scam case judgment, expressed disappointment at the verdict. In a statement, the professional services firm said its former partners S. Gopalakrishnan and Srinivas Talluri, among the 10 accused sentenced, were considering filing an appeal against the verdict.

The firm maintained that there has “never been any evidence presented” to establish that the two were either involved or aware of the fraud at Satyam.

‘Severe deterrent’

Law firm SNG & Partners managing partner Rajesh Narain Gupta said Satyam was an exemplary case where the Centre, through the Department of Company Affairs, intervened and ensured that the company did not become bankrupt.

“The judgment will have far-reaching consequences in checking corporate frauds and also act as a severe deterrent,” he said in a statement.

The judgment will not have an impact on the credibility of the industry

Bipin Chandra Pendyala

HYSEA secretary

The Satyam scam will remain a ‘black spot’ for the industry

Anil Reddy Vennam

FTAPCCI senior

vice-president

‘Though Satyam-like situations may occur anywhere, the way the company was reviewed authenticates the robustness of the Indian system to face such challenges’

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