Govt plans Rs 2000-crore financial aid for Satyam

New Delhi: The Central Government has decided to take direct action to remis looking at a salary bailout for the 53,000 Satyam Computer Services employees.
A Rs 2,000 crore package is under consideration to ensure that Satyam employees get their salary on time after it the new board said that they are looking for funds.
CNN-IBN has learnt that the government is looking at giving three instalments of Rs 500 crore to Satyam for the next three months and is planning another infusion of about Rs 400 crore.
Prime Minister Manmohan Singh met senior Cabinet ministers and officials at his residence to discuss the over Rs 7,000 Satyam scandal where the bailout package was finalised.
The meeting was attended by Home Minister P Chidambaram, Commerce and Industry Minister Kamal Nath, Corporate Affairs Minister Prem Chand Gupta and Planning Commission Deputy Chairman Montek Singh Ahluwalia.
The Centre has already directed the Serious Fraud Investigation Office (SFIO) to investigate the scam which threatens to affect India's IT brand.
The SFIO has got three months to submit its report on Satyam. The role of Satyam's auditors Pricewaterhouse Coopers will also be investigated.
A team of Andjhra Pradesh Police on Tuesday raided the Hyderabad office of Pricewaterhouse Coopers.
Meanwhile, Satyam’s interim CEO Ram Mynampati is in the US to reassure clients about the beleaguered company’s ability to serve them and is likely to be arrested on his return.
Others who are under the scanner for the accounting fraud in the IT major include former Indian School of Business (ISB) dean Ram Mohan Rao and former Cabinet Secretary and a Satyam director TR Prasad.
The first official report by the Registrar of Companies (RoC) into the Satyam scandal has already been sent to the government on Tuesday.
Sources say the RoC report has found serious manipulation in the company's finances.
Satyam's founder-chairman B Ramalinga Raju resigned on January 7 from the IT major's board after admitting a multi-crore fraud in the company’s accounts.
In a notification to the stock exchanges, the Hyderabad-based IT firm said Raju and managing director Rama Raju resigned early Wednesday and that the Securities and Exchanges Board of India (SEBI) had been informed.
In the regulatory statement, Raju said that the company had fraudulently incorporated a non-existent cash component and inflated the bank balance to reflect Rs 5,040 crore (Rs 50.4 billion) as against Rs 5,361 crores (Rs 53.61 billion).
''No board member had any knowledge of the real situation. Accrued interest of Rs 376 crore in books is non-existent. About Rs 1,230 crore was arranged to Satyam, but was not reflected in the books,” Raju said while announcing his resignation.