'Ghajini' to become India's biggest grosser ever!

Aamir Khan starrer 'Ghajini', which released to packed houses on December 25, is on its way to create history by taking over the mantle of the biggest domestic earner so far, leaving behind 'Dilwale Dulhania Le Jayenge'.
'Ghajini', a romantic action thriller that explores the life of a rich businessman who suffers from short-term memory loss following a violent incident, has earned Rs 2 billion ($41 million) in less than two weeks from its release.

The film has grossed Rs 1.62 billion in domestic markets and Rs 390 million have come from overseas markets till end of second week. The film is still running to packed houses and may cross more milestones.

'Ghajini', a film that introduced Asin to Hindi cinema opposite superstar Aamir, was released with 1,200 prints in the domestic market and in a lot of small towns where films are not often released in the first week.

In the overseas market, it is now second only to Karan Johar's hit film 'Kabhi Khushi Kabhi Gham' which collected Rs 440 million.

Likely price cut: Petrol upto Rs5, diesel Rs 3, LPG Rs25

Mumbai: Petroleum minister Murli Deora on Saturday said the government is considering a further up to Rs 5 per litre reduction in petrol, Rs 3 a litre in diesel and Rs 25 per LPG cylinder prices in the next few days.
"We have talked to Prime Minister, in coming days we are trying to reduce the prices of petrol, diesel and LPG...give us 10-15 days," Deora told reporters in Mumbai. "According to me the advisable reduction would be Rs 5 per litre for petrol, Rs 3 per litre for diesel and Rs 25 on LPG cylinder," he said when asked about the extent of reduction in prices.
Oil companies have minimized the losses on petrol and diesel, as crude oil prices have lowered to $40 per barrel from its peak of $147 a barrel in July last year. "From this quarter onwards, we expect the oil marketing companies to start making profits. But, if the crude oil price rises beyond 40 dollar per barrel, then it (profit) will not happen," Deora added. When asked about a reduction in kerosene prices, he said it is already available at the cheapest rate in India of Rs 9 per litre. On December 6, the Government had reduced prices of petrol and diesel by Rs five and Rs two per litre, respectively, as global crude prices hovered around four year low.

India rules out Israel type action against Pakistan

India virtually ruled out any Israel type action against Pakistan in the wake of the Mumbai terror attacks, saying the situation is not comparable. External Affairs Minister Pranab Mukherjee [Images], however, maintained that "future course" will decide how India will deal with Pakistan if the latter does not comply with its demands about ending terrorism. "I do not agree to that. Because this is totally wrong. The situation is not at all comparable," he said when asked whether Israeli type offensive against Hamas in Gaza Strip could be an option for the Government against Pakistan.
"I have not gone and occupied any (of) Pakistan's land which Israel has done (in Palestine). So, how the situationcan be comparable?" Mukherjee asked during an interview to CNN-IBN. Maintaining that all options are still "open", he said India expects Pakistan to act on the evidence linking elements in the neighbouring country to Mumbai attacks.
"When I say all options are open, all options are open. There is no need of picking up option a, option b, option c, option d. No need of that. I am not responding to that. What I am responding to is options are open," he said.
"We have not reached the end of the road. Pakistan, what they have asked for, we have given them. We expect them to act on it," Mukherjee said. "If they do not act on it, then what follow up steps we will take and in what space of time it will take place, future course will decide," he said.

Why the world is silent on Jammu and Kashmir, asks Pakistan

Prime Minister Yousuf Raza Gilani [Images] today accused the world of "double standards" in dealing with the Mumbai attacks and terrorist incidents in Pakistan, saying there was no need for the international community to make "so much noise" about the strike in India's financial hub.
Gilani sought to compare the terrorist attacks in Mumbai [Images] to the Israeli strikes in Gaza and what he termed "atrocities" being committed on innocent people in Jammu and Kashmir [Images] and questioned why the world community was silent on such issues.
"We have to see that the world does not have double standards," he told reporters on the sidelines of an official function in Karachi.
Noting that hundreds of people were killed in a suicide bomb attack on slain former premier Benazir Bhutto's [Images] homecoming motorcade in Karachi in October 2007 and that several foreigners, including an envoy, were killed in the suicide bombing of the Marriott Hotel in Islamabad [Images] in September last year, Gilani asked "how much noise" the world community had made about these incidents.
"How much noise did the world make then? Why didn't they say anything?" he said.
"Where was the world then? The world should think in a neutral manner. There is no need for them to make so much noise on one incident," he added.
Gilani said: "As far as the Mumbai incident is concerned - see how many innocent children and women have been killed in Palestine. That is no less than the Mumbai attacks. So why is no one speaking about that? Why is the world silent on that?"
"Whatever is happening in Kashmir, atrocities are being committed against innocent people there. When they speak of indigenous self-determination, that cannot be classified as terrorism. Why is the world silent on that," Gilani asked.
He attributed the Mumbai attacks to "an intelligence failure in India", saying this was the neighbouring country's "internal matter". He added: "As far as the world is concerned, it is presenting this one incident in an exaggerated manner."
Pakistan is prepared for "complete cooperation" with India to probe the Mumbai incident, including intelligence cooperation. "But we do not want that they should demoralise or ridicule Pakistan through the media or diplomacy," he said.
"You should not think Pakistan is weak. Pakistan is strong and its defence is strong. The country's army is strong and highly professional. There is no need to (feel) threatened," he added.
With a hint of sarcasm, he said: "They say 10 people held the whole of India hostage. We pray for their security every day because if any other incident happens (in India), it will be blamed on us. We are now defending two countries, not one. We are defending them and ourselves."
At the same time, he said Pakistan wants good relations with all neighbours, including India and Afghanistan.
Gilani also repeated an assertion he had made some time ago that more people had died in the suicide bombing on Benazir Bhutto's motorcade in Karachi than in the Mumbai attacks. He said over 180 people were killed in the bombing of the motorcade in October 2007. According to most accounts, about 140 people were killed in the bombing of Bhutto's motorcade while over 180 people were killed in the Mumbai attacks.

Internet death threat to Obama leads to Southern Californian man's arrest

Washington, January 10 (ANI): An Internet threat to kill U.S. President-elect Barack Obama has led to the arrest on a Southern Californian man.
Walter Edward Bagdasarian, 47, has been charged with expressing displeasure over Barack Obama's candidacy, and predicting that "he will have a 50 cal in the head soon," in a racist note posted to a Yahoo message board in October.
Court records reveal that Secret Service agents, upon raiding Bagdasarian's La Mesa home in November, found an arsenal of six weapons.
The documents further reveal that Bagdasarian had three handguns and three rifles, including a 30.06 with a telescopic sight and a Remington .50 caliber muzzle-loading rifle.
U.S. Secret Service agents in Los Angeles traced the post to Bagdasarian through the IP address. When they interviewed him, Bagdasarian reportedly admitted authoring the message.
Bagdasarian, who was released last month on a 100,000-dollar real estate bond, is not accused of actually plotting against Obama.
His attorney was unavailable for comment

BJP wants military action against Pakistan

After taking the international community into confidence, India should launch military action against Pakistan, the BJP president said on Saturday.
Pakistan was continuing with its support to terrorist activities from its soil and hence the military action against it had become almost unavoidable, party president Rajnath Singh said.
Addressing a press conference at the Madhya Pradesh BJP office in Bhopal, Singh charged the UPA government at the Centre with failure on all fronts.
The Congress-led ruling coalition was soft not only on Pakistan but also on terrorism, he alleged. The BJP chief said tough action against Pakistan should have been taken after the Mumbai train blasts of July 2006.
Prices of essential commodities had risen continuously in the last four-and-a-half years and if they were coming down now, it was not due to the UPA government, Singh said.
The prices were coming down due to world-wide recession and for this the Manmohan Singh government does not deserve any credit, he said.

Satyam's disgraced Raju brothers jailed till Jan 23

Hyderabad: Satyam Computers disgraced founder B. Ramalinga Raju and his brother B. Rama Raju were Saturday sent to jail till Jan 23, a day after they were arrested for a Rs.70 billion (Rs.7,000 crore) financial fraud in the company.
The duo were produced before the VI Additional Chief Metropolitan Magistrate D. Ramakrishna around 5 p.m. Saturday."The magistrate has ordered judicial custody (for the Raju brothers) till Jan 23," lawyer for the brothers S. Bharat Kumar told reporters outside the magistrate's house in West Maredpally area.
They were produced in the magistrate's residence as Saturday is a court holiday.The brothers have been charged with cheating, criminal conspiracy, forging, criminal breach of trust, among other things.
They will be lodged in Chanchalguda jail in the old city of Hyderabad.The magistrate rejected their lawyer's plea to permit Ramalinga Raju to get admitted to a hospital in view of his ill-health."Please permit my client to be admitted to a hospital," Bharat Kumar pleaded.Declining this, the magistrate directed the jail authorities to monitor Raju's health constantly and provide all medical help.
The brothers will be lodged in separate cells in the Chanchalguda jail.The 54-year-old Ramalinga Raju and his brother were arrested late Friday after they surrendered before Andhra Pradesh Director General of Police S.S.P. Yadav following registration of a criminal case against them.The arrest came two days after Ramalinga Raju confessed Wednesday to the country's biggest financial fraud of Rs.70 billion and resigned as chairman of the company he started in 1987.His brother Rama Raju, who was the managing director of the company, also resigned the same day.

Rajus questioned throughout night: Lawyer

New Delhi: B Ramalinga Raju, the founder-chairman of Satyam Computer, and his brother Rama Raju, who were arrested by the Andhra Pradesh police last night, were questioned by the police throughout the night.Police questioned the two for more than three hours, Raju lawyer Bharat Kumar said this morning.
The Crime branch of Andhra Pradesh booked the two after questioning under charges of fraud, forgery.Bharat Kumar said that the two have been booked under Section 120 b (criminal conspiracy), 420 (cheating), 406, 467 and 427 (criminal breach of trust, forgery and using forged documents as genuine).

Raju, brother to be produced in court on Saturday

Hyderabad: Disgraced former chairman of Satyam Computer B. Ramalinga Raju and his brother and former company managing director B. Rama Raju will be produced before a magistrate Saturday, a day after they were arrested by the Andhra Pradesh police.The duo, arrested on charges of cheating and forgery, spent the night in the custody of the Crime Investigation Department (CID) at the state police headquarters.A cardiologist from Care Hospital was called to examine Ramalinga Raju after midnight following a request from his lawyer S. Bharat Kumar, who claimed that the former Satyam chief was feeling chest pain.V.S.K. Kaumudi, inspector general of police, CID, told reporters late Friday night that both the accused would be produced before the magistrate within 24 hours.CID officials interrogated both Ramalinga Raju and his brother for over three hours to collect evidence. The CID would produce the same before the court while seeking their custody.Legal experts said the accused were not likely to get bail at least for 14 days. Ramalinga Raju's counsel said a bail petition would be moved after they were produced in court.Amid high drama, Ramalinga Raju and his brother, accompanied by their lawyer, drove to the police headquarters around 10 p.m. Friday to surrender but the CID officials arrested them to show that they were taking "tough action".Director General of Police S.S.P. Yadav told IANS that the state police arrested Ramalinga Raju and Rama Raju on charges of "criminal breach of trust, criminal conspiracy, cheating, falsification of records and forgery".According to legal experts, the Rajus, if convicted, could be sentenced to 10 years in jail.A few minutes before the Rajus surrendered to the police, CID had booked a criminal case against them in the Rs.70 billion financial fraud in the company. Police sources said the case was registered on a complaint by a Satyam shareholder Leela Mangat.
The former bank employee complained that she held 200 shares in Satyam and lost heavily due to Ramalinga Raju's action.Ever since Ramalinga Raju Wednesday quit as chairman while admitting massive fraud in the company, the police had been maintaining that they could arrest him only if somebody lodges a complaint.
Police officer Kaumudi said the arrest did not preclude investigations being carried out against the accused by registrar of companies and market regulator Securities and Exchange Board of India (SEBI).SEBI Friday served summons on Ramalinga Raju and his lawyer had announced that he would appear before SEBI officials at 4 p.m. Saturday. Following the arrest, the SEBI team is now likely to question him in CID custody.Ramalinga Raju's lawyer told reporters that SEBI would have to seek permission from the court to interrogate him.
The SEBI team has been conducting the probe into the fraud since Thursday. It checked the books of accounts at Satyam offices here.Meanwhile, police sources said the CID might also arrest Vadlamani Srinivas, who resigned as Chief Financial Officer (CFO) Thursday. The whereabouts of Srinivas were not known. Chief Minister Y.S. Rajasekhara Reddy had ordered a probe by CID Wednesday to "look at the criminal angle into the entire episode".The CID stepped up investigations following criticism by opposition parties that the Congress government was soft towards Ramalinga Raju.

Obama inauguration tickets sold out in a minute

Washington: Faster than a rock star concert, as many as 5,000 tickets to bleacher seats for Obama's presidential inauguration parade on January 20 were sold out in less than a minute of being put on sale.Interestingly, within a few hours, these tickets were put on resale on websites like craigslist and e-bay at a muchhigher premium. Being sold on a first-cum-first-serve basis, as decided by the Presidential Inauguration Committee, these tickets at US $ 25-a-piece were sold through Ticketmaster on Friday. A spokesman of Ticketmaster told the local media that all the 5,000 tickets were gone in a minute. Given the charisma associated with Obama and that for the first time a non-white is being sworn in as the president of the United States, the January 20th inauguration is expected to be the most attended presidential inauguration in recent history.More than 1.5 million people are expected to attend the historic occasion. Tickets were limited to four per person for purchase. Tickets are not required to view the parade, but the purchase of tickets will guarantee spectators a seated spot along the parade route. The Washington Times said a notice posted to the ticket announcement on the inaugural committees Web site said,"Update: All parade tickets sold out.""We are very pleased to make these tickets available to the public as part of our commitment to holding the most open and accessible inauguration in history," the executive director of the inaugural committee, Emmett S Beliveau, said in a statement.

Satyam Raju, brother surrender before Andhra DGP, arrested

Hyderabad: The Andhra Pradesh police Friday night arrested disgraced former founder-chairman of Satyam Computers B. Ramalinga Raju and his brother and former company managing director B. Rama Raju.The Criminal Investigation Department (CID) of the AP police arrested Ramalinga Raju and Rama Raju on charges of "criminal breach of trust, criminal conspiracy, cheating, falsification of records and forgery," Director General of Police S.S.P. Yadav told IANS.The two brothers accompanied by their lawyer S. Bharat Kumar reached police headquarters and surrendered. They were interrogated by CID personnel for some time before being arrested.
Their move came after a criminal case was registered against them by the CID in the Rs.70 billion financial fraud in the company.
The case was registered under the Indian Penal Code (IPC). The police are likely to produce them before a magistrate Saturday morning.Raju quit as chairman Wednesday admitting that the company had cooked its books resulting in an "inflated (non-existent) cash and bank balances" over several years. His brother Rama Raju also quit as managing director.

Lanka: Tigers lose Elephant Pass

In a major success, the Sri Lankan troops today seized the strategic Elephant Pass, the gateway to the Jaffna peninsula, dislodging the Tamil Tigers from their key bastion a week after capturing the rebels' de facto capital Kilinochcci in the island nation's embattled north.
Announcing the capture of Elephant Pass in a nationally televised address, President Mahinda Rajapakse said the security forces have registered "another historic victory".
He said the Tigers have been "completely dislodged" from the Elephant Pass and the security forces established their authority there.
In a statement, the defence ministry also said that Elephant Pass "is now under the total control of security forces."
The capture of the Pass frees the entire Jaffna-Kandy A9 road from the LTTE [Images].
Sri Lankans in Colombo celebrated the seizure of the strategic pass by bursting crackers.

Gilani says situation on Indian border 'very fragile'

Describing the situation along its border with India as "very fragile", Pakistan on Friday said it was "regrettable" that the bilateral peace process had stalled after the Mumbai [Images] terrorist attacks and appealed to the world community not to allow Indo-Pak tensions to escalate.
"The situation on our eastern borders has once again become very fragile," Prime Minister Yousuf Raza Gilani [Images] said in an address to a seminar in Islamabad [Images] on 'Democracy in Pakistan'.
He accused India of indulging in a "blame game, media vilification campaign and war mongering" against Islamabad after the Mumbai attacks, which have been blamed on the Pakistan-based Lashkar e Tayiba.
"The world must not let tensions between India and Pakistan escalate," he said, adding that India's decision to put on hold the composite dialogue process was "regrettable".
Gilani said, "It was and still remains our earnest hope that an improved state of relations between Pakistan and India could provide a precious opportunity for our two countries to work for resolution of the difficult issues between us, in particular the unresolved Kashmir dispute."
He said this "outstanding issue must be resolved keeping in view the aspirations of the Kashmiri people". The world community could help in this process by "encouraging both the parties to stay the course and to demonstrate courage, determination and sincerity".
Gilani also said Pakistan faced regional challenges "mainly on two counts: the conflict in Afghanistan and the unresolved Kashmir dispute". The resolution of these issues is "imperative for peace and economic prosperity of the region and its people", he added.
Gilani said India had "refused to accept" Pakistan's proposals for conducting a joint investigation into the Mumbai incident and for setting up a joint commission under the national security advisers of both countries to address the emerging situation.
Pakistan is sincere about enhancing peace and security in South Asia and the country's democratic government had "done a lot" to normalise relations with India, he said.
Gilani alleged that India had indulged in a blame-game and war-mongering in the wake of the Mumbai attacks despite "not having any concrete evidence" against Pakistan, and this had brought the two countries to "square one in terms of confidence-building measures".
The Pakistan premier said Pakistan was among the first countries to condemn the terror attacks in Mumbai and "had taken many steps, including closing down of offices of the Jamaat ud Dawa, arrest of its leaders and freezing of their assets".
Pakistan cracked down on the JuD, the front organisation of the LeT, almost two weeks after the Mumbai attacks following the UN Security Council's declaring the group as a terrorist outfit.
In an obvious reference to the previous military regime of ex-President Pervez Musharraf [Images], Gilani said extremism and terrorism had "taken roots in the country over the past eight years" but their "spread had remained largely unchecked".
At the same time, "Pakistan's relations with neighbouring countries, particularly with Afghanistan, had deteriorated to the lowest ebb", he said.

Ramalinga Raju surrenders before police

Disgraced former chairman of Satyam Computer Services [Get Quote] B Ramalinga Raju late Friday evening surrendered before Andhra Pradesh's Director General of Police S S P Yadav, according to a police spokesperson.
Complete Coverage: The Satyam fiasco
When contacted, Satyam spokesperson declined to comment on reports of Raju's surrender. Raju, whose whereabouts were a matter of speculation ever since he made the startling disclosure on Wednesday about the Rs 7,800 crore financial fraud, had been in hiding and was summoned to appear before the SEBI on Saturday.
Earlier this evening, the government disbanded the current board of Satyam Computer and announced that it would nominate 10 directors on its board.
Corporate Affairs Minister Prem Chand Gupta said in New Delhi that the names of the new members would be announced soon for the board, which would meet in the next seven days. The existing board of the company was scheduled to meet o Saturday to discuss the crisis that has engulfed the company and its over 50,000 employees.
Founder of Satyam B Ramalinga Raju, who has been summoned by market regulator SEBI on Saturday, had resigned as Chairman after disclosing staggering financial fraud. Five other directors had also resigned leaving the strength only at three.
Announcing the decision, Corporate Affairs Minister Prem Chand Gupta said: "The current board ceases to exist and there would not be any meeting on Saturday. The new board will meet in the next seven days."
The government's decisive action came nearly 60 hours after the startling disclosure by Raju, presumed to have strong political friends, that put the company and its over 50,000 employees fate in limbo. Raju can face up to 10 years of imprisonment along with a fine, which may extend to Rs 25 crore (Rs 250 million), in the financial fraud that led to erosion of investors wealth by whopping Rs 10,000 crore (Rs 100 billion) in a day.

Kasab's parents missing from their home: Burney

Leading Pakistani rights activist Ansar Burney on Thursday claimed that the parents of Ajmal Amir Kasab, lone terrorist arrested by Indian authorities for the Mumbai attacks, were missing from their home in Faridkot village in Punjab province.
The former human rights minister said a team from the Ansar Burney Trust recently visited Faridkot and found that Kasab's parents were missing from the village.
"Where are the parents of Ajmal Kasab and who took them out from the village? This is another question that would create further doubts," said Burney. He added that the team from his Trust had confirmed that Kasab is a Pakistani national.
After weeks of denial, the Pakistan government on Wednesday acknowledged that a preliminary investigation by its security agencies had established that Kasab is a Pakistani national.
However, Prime Minister Yousuf Raza Gilani sacked National Security Advisor Mahmud Ali Durrani for speaking to the domestic and international media on the issue.
Burney said the sacking of Durrani for making a statement regarding Kasab had "created further doubts" about involvement of the Pakistan government and "some Pakistani organisations" in the Mumbai attacks.
"Durrani was sacked because he spoke the truth and admitted that some of the organisations from Pakistan are involved," Burney alleged.
Burney criticised the handling of the situation by the President and Prime Minister. "How is the world going to believe our government any more after they take such steps?" he asked, referring to the sacking of Durrani and the "mishandling" of the issue of Kasab's nationality.
He also demanded resignation of interior ministry chief Rehman Malik, who he alleged had "mishandled" the matter of Kasab's nationality and created more problems for Pakistan

Satyam chairman asked to appear before SEBI

The chairman of India's embattled Satyam Computer has been asked to appear before Securities and Exchange Board of India (SEBI), the market regulator, on Saturday, his lawyer said on Friday, as the outsourcer battles a massive accounting fraud.
Stand-in CEO Ram Mynampati has said the New York-listed company faces a crisis following chairman and founder Ramalinga Raju's admission on Wednesday of years of accounting fraud.
A team from SEBI has been going through Satyam's accounts at its headquarters in this southern Indian city for the last couple of days.
S. Bharat Kumar, Raju's lawyer, told Reuters Satyam's chairman has been asked to appear before the SEBI team at the outsourcer's headquarters at 4 p.m. on Saturday. However he refused to say whether Raju would comply with the request.

SATYAM'S KING HAS BEEN ARRESTED BY AP POLICE

AT 10.30 PM AROUND AP POLICE ARRESTED SATYAM'S RAMALINGA RAJU,HE SURRENDER BEFORE AP DGP JUST NOW..

Government supersedes Satyam board, sacks remaining directors

Hyderabad/New Delhi, Jan 9 (IANS) The government Friday evening superseded the Satyam board and dismissed three remaining directors, including two independent ones, of the tainted IT major.
The government has cancelled a Satyam board meeting scheduled for Saturday in Hyderabad.
It also reconstituted the Satyam board and appointed 10 nominated directors.
The first meeting of the new board is to be held in seven days.

Army calls off Poonch operation

Jammu: The army has called off its operation late Thursday night to flush out militants hiding in a dense forest in the Poonch district of Jammu and Kashmir after eight days "due to tactical reasons."
A source in the army said there was a possibility of the terrorists having slipped away from the Mendhar forest area taking advantage of the rugged terrain and bad weather.
The source said no exchange of fire had taken place with the terrorists Thursday though troops had been on alert.The troops had busted three hideouts and all they found was edible oil, dal, rice and gas cylinders.
"All the caves where the militants were hiding had two openings," the source said.The operation in Poonch had started Jan 1 when terrorists killed two army men, a junior commissioned officer and a soldier, while they were laying a cordon.The militants had taken away the rifle of the JCO, whose body was found two days later. The army said four militants were also killed in the operation and one security personnel.

Pak assures US of full cooperation in Mumbai terror probe

Rezaul H Laskar Islamabad, Jan 8 (PTI) A day after Pakistan acknowledged Mumbai attacker Ajmal Amir Kasab as its national, President Asif Ali Zardari and Prime Minister Yousuf Raza Gilani today assured the US of full cooperation in the probe into the deadly terror strikes in India's financial hub. The assurance was conveyed by the two leaders during a meeting with US Ambassador Anne Patterson at the presidency here this evening, media reports said.
There was no official word on the meeting though official sources were quoted by TV channels as saying that the US envoy had met Pakistan's top leadership to discuss the status of the probe into the Mumbai attacks and the issue of Islamabad acknowledging Kasab as a Pakistani national. Earlier, Zardari and Gilani held a one-to-one meeting and reportedly agreed that further information on Kasab should not be shared with the media till the completion of investigation by Pakistan's security agencies.
During her meeting with the top Pakistani leaders, Patterson also discussed US Vice President-elect Joe Biden's visit to Pakistan beginning tomorrow, the security situation along the border with Afghanistan and the war on terror. She reportedly said India and Pakistan should exercise restraint and defuse tensions sparked by the Mumbai attacks.
Earlier in the day, the Prime Minister met Zardari to discuss the regional security situation in the wake of the government's admission that Kasab is a Pakistani national. Gilani sought the meeting with the President amidst reports of sharp differences between the two leaders.

Durrani says charges against him 'incorrect'

Islamabad, Jan 7 (PTI) Mahmud Ali Durrani, sacked from the post of National Security Advisor for confirming Mumbai attacker Ajmal Kasab's Pakistani nationality to the media, today said the charges levelled against him were "incorrect" and his conscience was "clear". A day after he was unceremoniously removed by Prime Minister Yousuf Raza Gilani, Durrani said he always had the best interests of Pakistan in his mind.
An angry Gilani sacked Durrani for his "irresponsible behaviour" and for failing to take the government into confidence on national security issues. Official sources said the move came after Durrani told the media that a preliminary probe had established that Kasab is a Pakistani national.
Durrani told Geo News channel today that he had not told any foreign TV news channel that all 10 terrorists involved in the Mumbai attacks were Pakistanis. He said the charges levelled against him were "incorrect".
Durrani also said that his conscience was "clear" as he had always tried to do everything possible in the interest of Pakistan. The sacking is said to have caused differences between Gilani and Pakistan President Asif Ali Zardari, who had hand-picked Durrani for the job last year.

Congressional Committee holds hearing on Mumbai attack

Washington, Jan 8 (PTI) Top American intelligence and police officials have been asked by a powerful Congressional Committee to testify before it today on the lessons the US can learn from the ghastly Mumbai terrorist attack. Headed by Senator Liberman, the Senate Committee on Homeland Security and Government Affairs has asked Charles E Allen, Under Secretary for Intelligence and Analysis and Chief Intelligence Officer, to testify before it.
Besides, Donald Van Duyn -- Chief Intelligence Officer, Directorate of Intelligence, National Security Branch, Federal Bureau of Investigation -- and Raymond W Kelly, New York City Police Commissioner, would also appear before the committee. At least 173 people including several American nationals were killed in the November 26 terror strikes in India's financial hub Mumbai.

Sanjay Dutt all set for political debut on SP ticket

New Delhi, Jan 8 (PTI) Following in the footsteps of his father and sister, Bollywood actor Sanjay Dutt is all set to make his political debut with Samajwadi Party today naming him as its candidate in the Lok Sabha elections from Lucknow seat which is now represented by Atal Bihari Vajpayee. The party took the decision to field the 49-year-old superstar at its central parliamentary board meeting held here today.
SP general secretary Amar Singh announced the decision to field 26 other candidates, including party chief Mulayam Singh Yadav, from Mainpuri. Reacting to the decision, Sanjay's sister and Congress MP Priya Dutt said in Mumbai that "he (Sanjay) has a desire to serve people and I think the best platform is politics.
This is the choice he has made and I wish him all the best." Sanjay's father the late Sunil Dutt, who was also a major star in Hindi films during 60s and 70s, was a five-time Congress MP while his sister Priya was elected to the Lok Sabha on a Congress ticket in a bye-election after Dutt's death.
In 1980, Sanjay's mother Nargis Dutt, a renowned actress, was nominated to Rajya Sabha. While Sunil Dutt and Priya entered Lok Sabha on Congress tickets, Sanjay will contest as a SP candidate, a key ally of Congress.
Since Sanjay was convicted under the Arms Act and is out on bail, the SP would seek the permission of the Supreme Court, where the matter is pending, and the Election Commission to field him.

Raju family stake in Satyam falls to 2.34%

MUMBAI: Satyam Computer Services on Thursday said the stake of promoters, Raju family, in the company has dropped to 2.34 per cent following the
share sale by lenders, with whom all the promoter's equity has been pledged. In a disclosure to the National Stock Exchange, Satyam said that SRSR Holdings' stake in Satyam has come down to 2.34 per cent from 3.60 per cent due to the sale of shares pledged by the promoters to lenders for raising funds. The family of B Ramalinga Raju, who resigned as Satyam Chairman after a shocking disclosure of accounting fraud in the IT major, had held 8.27 per cent through SRSR Holdings at the end of September quarter.
The lenders have sold over 85.30 lakh Satyam shares, which were pledged by the promoters, in open market transactions. After the sale, SRSR Holdings now have 1.57 crore shares representing 2.34 per cent stake in Satyam, which includes over 1.23 crore pledged shares already transferred to lenders, the notification added.
In a week this is the second time that the lenders have sold their pledged shares. While the promoter holding last week was 5.13 per cent, the sale of shares pledged by the promoters to lenders has brought down the holding to 2.34 per cent. The company last month had said that the promoters had pledged their entire equity holding of 8.61 per cent to the institutional investors which include ICICI Prudential, Aberdeen Asset Management and Fidelity. The institutional investors together hold 60 per cent stake in the IT major.

Satyam may axe 10,000 employees next month: Headhunters

NEW DELHI: With a big questions mark on its cash position and a minimum outgo on salary estimated at Rs 500 crore a month, Satyam may lay off over


Employees unsure10,000 employees next month, says a recruitment firm. "It is most likely that Satyam will cut 10,000 jobs next month as the company is left with no cash to pay the salaries. The current fiasco is likely to put pressure on salaries, which may reduce by 10 per cent due to the surplus of about 20,000 people in the jobs market," Headhunters India CEO Kris Lakshmikanth said. Satyam interim CEO Ram Mynampati while admitting that the cash position is not encouraging, the company, however, has taken care of salary for December. Lakshmikanth said till Tuesday evening there were about 7,800 people from Satyam who had posted their resumes on job sites and by Wednesday afternoon, it has gone up to 14,000. The uncertainty about jobs is killingly painful for the 53,000 employees of Satyam, especially when the industry is going slow on recruitment. Further, possibility of a takeover too looks distant as the accounting fraud done by the company would make it difficult for any firm to evaluate its correct market value, which is compounding the worries of the employees.
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IT-BPO union Unites Professionals general secretary Karthik Shekhar said, "In case of any lay off at Satyam, we may take legal action." "We have received over 7,000 hits since the news break. Yesterday, in one hour we have seen over 800 hits (no of people visiting the site) from Hyderabad. People have been enquiries on how the union can help them," Shekhar added.

PwC faces axe from major clients after Satyam fiasco

NEW DELHI: Audit firm PricewaterhouseCoopers (PwC), which has major companies like HCL Infosystems, GMR Group, Bosch, and Maruti Suzuki among its
over 100 clients in India, faces a possible axe after its role has come into question in the Satyam fraud case, of about Rs 7,800 crore. "Even if there is no connivance, there is certainly negligence on the part of PwC and we have internally decided to terminate their services," said an official of a company with over a Rs 10,000 crore turnover audited by PwC, requesting anonymity. Bosch Managing Director V K Viswanathan said that the company has not taken a decision on the issue. "We don't know the entire story. So far we have heard only from Ramalinga Raju, but haven't heard anything from PwC," Viswanathan said. When contacted Maruti Suzuki India Chairman R C Bhargava said, "It is for the audit committee of the board to look into the matter. Once it submits its report, appropriate action will follow." The companies audited by PwC are of the opinion that it is too early to cast suspicion on all the clients of the audit firm. "It is too early to comment. The Satyam episode has been as a shock to everyone and the issue has not yet been settled; so we can't give any official comment at this point of time," an official of Religare Enterprises, which is also audited by PWC, said.

Satyam to be replaced by Sun Pharma in Sensex, effective Jan. 12

NEW DELHI: The Bombay Stock Exchange
will replace Satyam Computer Services with drugmaker Sun Pharma in the benchmark share index, effective Jan.
12, the spokesman for the exchange said on Thursday. National Stock Exchange said on Wednesday it would remove Satyam from its S&P CNX Nifty 50-share index from the same date. The head of the Indian outsourcing firm resigned on Wednesday, disclosing profits had been falsely inflated for years, sending its shares crashing nearly 80 percent.

'Govt will ensure Satyam employees do not suffer'

Dr Ashwani Kumar, Union minister of state for commerce and industry, said on Thursday that the government will ensure that the Satyam [Get Quote] employees do not suffer as result of the fraud committed by the management.
He was replying to a question at a press conference held during the Pravasi Bharatiya Divas celebrations in Chennai.
He also said that we should not paint the entire private sector companies as villains because of one bad firm. He said that the government will take steps to restore investor confidence, but did not elaborate on the issue.
The Satyam fiasco: Complete Coverage
Kumar said that the government plans to provide a major boost to a flagging economic by investing Rs 1 lakh crore (Rs 1 trillion) in various 'infrastructure projects that will begin in the next 100 days'.
He said that the government's aim was to pump-prime the economy and infusion of these massive funds into the core sector will especially benefit companies in the cement, steel, metals, sanitary-ware, plastics and allied sectors.
The infrastructure sector encompasses as many as 42 different industries that employ over 3.2 crore (32 million) people. Kumar said that government's focus was to create more blue collar jobs so as to benefit a larger section of the population.
Kumar also said that work on the Rs 4-lakh-crore (Rs 4 trillion) Mumbai-Delhi Industrial Corridor being set up with Japanese assistance will 'begin immediately' and 'will be completed in the financial year 2012-13'.
In a move that will also provide a boost to the automobile sector and create jobs, the government plans to buy 40,000 buses and lorries. Kumar said that these vehicles will be bought by various state governments, but almost 90 per cent of the cost will be borne by the central government in the form of grants.
Turning to the financial sector, the minister said that banks and other financial institutions will be encouraged to lend to industries at affordable rates of interest. Interest rates, he said, have been brought down from 16 per cent to around 11 per cent.
Stating that the government's strategy to control runaway prices is bearing fruit as inflation has been brought down from 12 per cent to just above 6 per cent, Kumar exuded confidence that with the prices of petrol and diesel likely to be reduced further in the coming weeks, inflation will fall further to 5.5 per cent levels.
The minister claimed that the impending Lok Sabha elections will be fought on a three-pronged plank of terror, internal security and economy.
Justifying the government's heavy expenditure into the economy to kick-start it, Kumar said that this was a crisis of unprecedented magnitude and thus more importance has been given to pump-priming the economy than to control the rising fiscal deficit. The government, he assured, will deal with that later.
On the terror issue, Kumar said that getting Pakistan to admit that Kasab was a Pakistani was a big victory for Indian diplomacy. He said that internal and national security would never be compromised and the government will take all steps to ensure security. He side-stepped a question on whether war was still an option.
On the issue of Rahul Gandhi becoming the nation's prime minister, the minister said that Rahul was 'ready for any responsibility' entrusted to him.

China woos saffron parties; Tibet, Arunachal on agenda

Five bigwigs of Bharatiya Janata Party, Rashtriya Swayamsevak Sangh and Shiv Sena are on a six-day visit to China on an invitation from the Communist Party of China.
The BJP-RSS-SS delegation is led by Bal Apte, BJP member of Rajya Sabha. Ram Madhav, member of RSS executive council, Chandan Mitra, editor of Pioneer, Balbir Punj, senior journalist and BJP leader, and Suresh Prabhu, Shiv Sena leader from Maharashtra, are part of the delegation.
On December 5, the delegation met members of the Politburo and also the head of international department of the communist party, who is often considered more senior than China's foreign minister.Wang Jiarui, minister of International department of CPC and Vice Minister Liu Hongoai met the delegation in Great Hall near Tiananmen Square in Beijing [Images]. Later, a lunch was hosted for the visiting delegation by the CPC.
In their interactions, both sides exchange views on Tibet [Images], Arunchal Pradesh and the economic melt down. Talking to rediff.com from Shanghai, Ram Madhav said, "We represented national consensus over the issue of Tibet and Arunachal Pradesh."
He said the interactions of CPC and the Hindu parties were quite broad-based and intense where Chinese counterparts also stuck steadfastly to their views. Apte stressed that party-to-party meetings are in fact people-to-people meetings because political parties directly deal with people.
Madhav said, "We emphasised that Tibet has a distinct culture and that identity must be preserved. We also gave them an idea about how much Dalai Lama [Images] is revered in India. Of course, we have different perspectives but dialogue is important."
Madhav claimed this was the first time that such a dialogue on crucial issues at political parties' level had took place between India and China.
The delegation was also taken to political school of CPC. Every Chinese leader has to attend this school. Indian leaders also met members of China's think-tank.

Pak in damage control mode; Zardari, Gilani meet

Amid reports of a rift between them, Pakistan President Asif Ali Zardari [Images] and Prime Minister Yousuf Raza Gilani [Images] met in Islamabad [Images] on Wednesday to discuss the regional security situation after the country's admission that captured Mumbai [Images] attacker Ajmal Amir Kasab [Images] is its national.
Gilani sought the meeting with Zardari to discuss the fallout of the government's acknowledgment on Wednesday that 22-year-old Kasab is a Pakistani. There was no official word on the meeting though official sources were quoted by television channels as saying that Gilani briefed Zardari on the prevailing situation and his decision to sack National Security Advisor Mahmud Ali Durrani for confirming Kasab's Pakistani nationality to the media without taking him into confidence.
The meeting came amid Pakistani media reports that Zardari was angry over Gilani's decision to sack Durrani without consulting him. Durrani had been handpicked by Zardari for the key post last year.
The two leaders also discussed the appointment of a new National Security Advisor and considered several names.
Among these was former NSA Tariq Aziz, who held the post during the regime of former President Pervez Musharraf [Images]. Sources told PTI that Aziz had been sounded out recently by the government to play a role in back-channel diplomacy with India. However, Aziz had indicated to the government his reluctance to take up any official post in view of his close relations and friendship with Musharraf. Gilani came back to the federal capital after a two-day visit to Lahore [Images] and met Zardari following his return from his maiden official visit to Afghanistan.
An angry Gilani on Wednesday sacked Durrani for his "irresponsible behaviour" and for failing to take the government into confidence on national security issues. Official sources said the move came after Durrani told the media that a preliminary probe had established that Kasab is a Pakistani national.
Durrani told Geo News channel on Thursday that he had not told any foreign television news channel that all 10 terrorists involved in the Mumbai attacks were Pakistanis. He said the charges levelled against him were incorrect.
Durrani also said that his conscience was clear as he had always tried to do everything possible in the interest of Pakistan.

Satyam fraud may hit World Bank image

The revelation of Satyam Computer Services Ltd of about a Rs 7,800-crore (Rs 78 billion) fraud may dent the image of the World Bank as it kept quiet until last month about its suspicion of the IT firm's corporate malpractices, a leading financial daily said on Thursday.
In 2006, the World Bank told the US Justice Department it suspected Satyam may have been involved in bribery, the Wall Street Journal reported, citing bank officials.
However, in late 2007, the bank completed an internal investigation and found that Satyam had acted improperly. Under World Bank rules, the company then had the chance to argue why it shouldn't be banned.
"The bank should have been more responsible about reporting publicly on what they knew to be misconduct at highest levels of Satyam," the paper quoted Bea Edwards, international reform director at the Government Accountability Project, Washington DC, watchdog group, as saying.
In February 2008, the World Bank temporarily suspended Satyam from bidding on new contracts, and then in September formally made the firm ineligible to bid on future contracts, the Journal added.
But the paper said it did not announce the ban, called a debarment, until December 23 -- and then only after press reports about it.
Meanwhile, a World Bank spokesperson told the Journal that it had acted responsibly. "We took the action we needed to take as an institution to maintain our high corporate integrity standards," the spokesperson said.
When World Bank loans are used by governments to hire contractors, the organisation publicly discloses any firms that it bans from future work, the paper said. Instituting the ban can be a long process. Satyam remains eligible to bid for development-project contracts.
But for contracts directly with the World Bank -- to supply offices with technology and other services, for instance -- it doesn't routinely disclose firms it blackballs, even if it suspects those firms of bribery, the Journal noted.
Bank officials say that makes it easier and quicker to cut off firms, but acknowledge privately that it comes at the cost of informing the public.
In the case of Satyam, the World Bank had been looking into the relationship of the computer firm and a senior official at the bank, who was suspected of steering contracts to Satyam in exchange for stock options, the paper said.

Satyam chief quits, shares plunge

BANGALORE (Reuters) - The head of embattled Satyam Computer Services (SATYAM.BO : 39.95 -139.15) resigned on Wednesday and said the firm's profits had been inflated, sending the stock down more than 80 percent and roiling investor confidence.
India's biggest corporate scandal in memory threatens future foreign investment flows into Asia's third-largest economy and casts a cloud over growth in its once-booming outsourcing sector.
Ramalinga Raju, founder and chairman of Satyam, India's fourth-largest outsourcer, said in a statement the company's profits had been inflated over recent years but no other board member had been aware of the financial irregularities.
"The gap in the balance sheet has arisen purely on account of inflated profits over a period of the last several years," Raju said, adding he was prepared to face up to the legal consequences.
The shocking revelation came after Satyam's botched attempt last month to buy two construction firms partly-owned by the company's founders and as the World Bank, a major customer, barred Satyam from new business, citing "improper benefits" given to Bank officials. Satyam has demanded those comments be retracted.
The company's value has slumped to little more than $500 million from around $7 billion as recently as last June.
"I think there is no future for this stock. This case for India is similar to what happened to Enron in the U.S.," said Jigar Shah, senior vice-president at Kim Eng Securities.
"It will not stop at Satyam. Many more companies will come into scrutiny like that. There is a strong possibility investments in India will be affected."
The scandal set off a wave of condemnation from Indian market regulators and government officials, and prompted banker Merrill Lynch to terminate its engagement with Satyam.
Raju's statement sent Indian equity markets into a tailspin, with Bombay's main benchmark index tumbling 7.2 percent in a firmer session for world markets.
"It's going to impact the Indian outsourcing industry. Customers are going to be concerned about offshoring firms in India," said Sudin Apte, country head of Forrester in the western city of Pune.
Satyam, which specialises in business software and back-office services for clients such as General Electric and Nestle, said it would go ahead with a planned board meeting on Saturday to consider a share buyback following a rash of broker downgrades even after its acquisitions were called off last month.

Regulators to probe books of 8 Satyam subsidiaries

New Delhi: The Government on Thursday ordered a probe into the accounts of eight subsidiaries of Satyam Computer Services, which has lost its share value after its former chief confessed to doctoring accounts.
The accounts of Maytas Properties, Maytas Infrastructure, Satyam BPO, Nipuna Services, Knowledge Dynamics, Nitor Global Solutions, Ca Satyam ASP and Satyam Venture Engineering Services would be investigated.
The inspection would be conducted as per the provisions of section 209A of the Companies Act, Corporate Affairs Minister Prem Chand Gupta said.
Gupta said that Financial Reporting Review Board of the ICAI has been asked to get the internal working documents of Satyam and give its report within three days to the institute.
The Institute of Chartered Accountants of India has been directed to take action against Satyam’s auditors. "The Government is keeping all options open. We are in close interaction with all other regulators to take coordinated action," he said.
"Registrar of Companies and Securities and Exchange Board of India (SEBI) are working in Hyderabad. There feedback has been sought," the Minister said.

FACTBOX - Five facts about outsourcer Satyam

BANGALORE (Reuters) - The chairman of Satyam Computer Services (SATYAM.BO : 39.95 +-139.15), India's 4th-biggest software services exporter, announced his resignation on Wednesday, saying the company's recent profits had been overstated.
He apologised to staff and shareholders and said he was prepared to face the legal consequences.
Following are five facts about Satyam:
* India's No.4 software services exporter was founded in 1987 by Chairman B. Ramalinga Raju, who was born into a family of farmers and is a Management graduate from Ohio University.
* Satyam debuted on the Indian markets in 1991, followed by a listing in New York in 2001. Last year, it launched a secondary listing on Euronext Amsterdam under NYSE Euronext's new "fast path" process for cross-listings in New York and Europe.
* Satyam, whose clients include General Electric, Nestle, Qantas and Fujitsu, specialises in business software, and offers back-office outsourcing and consulting services.
* In the year to end-March 2008, Satyam posted a 46.3 percent rise in revenue to $2.1 billion under U.S. accounting standards, while net income rose 39.7 percent to $417 million. In October, it said revenue in the year to end-March 2009 would rise 19-21 percent to $2.55-$2.59 billion.
* Satyam, based in Hyderabad, had 52,865 employees at end-September. It competes for outsourcing deals with local rivals Tata Consultancy Services (TCS.NS : 504.8 +-1.6) and Infosys Technologies (INFOSYS.BO : 1187.1 +19.45) as well as global majors such as IBM and Accenture

One-off fraud case, yet IT industry rattled

The IT sector is in the limelight again, but for all the wrong reasons. "The scale of fraud is unprecedented in Indian corporate world and how this continued for a long period needs a thorough probe," said Ganesh Natarajan, chairman of the National Association of Software and Service Companies. "The Satyam (SATYAM.BO : 39.95 -139.15) fiasco is a stand-alone case of failure of corporate governance and it should be viewed in this light."
Expressing shock at the alleged multi-year mismanagement of revenues, Suresh Senapaty, executive director and CFO of Wipro Ltd (WIPRO.NS : 244.65 1.95) said, "Global standards of corporate transparency are very high in India and we are confident that this is an isolated case and not representative of the IT industry."
KPMG, the consulting firm, said that the incident would have a negative impact on the industry as IT is a major part of Indian industry. "We have to make it known that this is a 'one off' incident and should be treated accordingly," said Russel Pereira, National Industry Director, Financial Services, KPMG.
Even if the incident does not impact the image of Indian IT industry, it has put corporate governance scenario in focus. "If you are squeaky clean, such things don't happen to you," said the Nasscom chief. "Ramalinga Raju's (Satyam chairman) letter hints that once you start riding the tiger, it becomes impossible to get down," he said.

New York Stock Exchange halts trading in Satyam stock

Hyderabad, Jan 7 (IANS) The New York Stock Exchange Wednesday halted trading in the stock of beleaguered Satyam Computer Services prior to the opening of the market at 9.30 a.m. US eastern time, the NYSE said in a statement.
'NYSE regulation is currently evaluating the news relating to Satyam and will continue to closely monitor further developments. Trading was halted prior to the opening of the market. The security will remain halted until further notice,' the exchange's regulation office said in a statement.
The Indian IT bellwether's stock closed at $9.35 on NYSE Tuesday when its 3,391,964 American Depository Shares (ADS) were transacted.
The bluechip's shares had a free fall on the Indian bourses after its founder chairman B. Ramalinga Raju and managing director B. Rama Raju resigned and admitted to having committed a revenue fraud to the tune of Rs.65.92 billion (Rs.6,592 crore/$1.3 billion).
The Satyam stock fell to a historic low of Rs.39.95 at 4 p.m. on the Bombay Stock Exchange (BSE) from the opening price of Rs.179.10, a record decline of 78 percent. A whopping 143,009,827 shares were sold in a matter of six hours.

Wanted to go to India, says ISI chief, Pak Army says misquote

Hours after ISI chief Lt Gen Ahmed Shuja Pasha's comment that he wanted to travel to India to help with the Mumbai attacks probe was reported, Pakistan's Army said Pasha had been quoted inaccurately.
In his first published comments after the Mumbai attacks, the ISI chief had ruled out a military confrontation with India, saying Islamabad's enemy was terrorism, not New Delhi.
In an interview with German news magazine Der Spiegel, Pasha had said he had been willing to travel to India after the Mumbai attacks to help in the investigations, but had been prevented from doing so. "Some people here are simply not ready (for such a gesture)," he said.
Pasha had gone on to add: "There will not be a war. We are distancing ourselves from conflict with India, both now and in general... We may be crazy in Pakistan, but not completely out of our minds. We know full well that terror is our enemy, not India."
Late on Wednesday evening, a spokesman for Pakistan's Inter-Services Public Relations said: "Some of the important issues (raised by Pasha) have been reported out of context or have been incorrectly constructed as a result of mistranslation".
The Der Speigel report said Pasha had "switched back and forth between English and surprisingly accent-free German" during the interview.
The spokesman said Pasha's conversation with Der Spiegel had taken place on December 12, 2008, when the "environment was different from what it is today".
He added: "Some of the things reported are either incongruous or have not been clearly stated."
Der Spiegel said the interview had been conducted in Pasha's Islamabad office, but did not say when.
The ISI chief told Der Spiegel that he had been apprehensive of Indian military action in the immediate aftermath of the Mumbai attacks. "At first we thought there would be a military reaction. The Indians, after the attacks, were deeply offended and furious, but they are also clever," he said.
On the evidence of Pakistani involvement in the attacks, he said: "They (India) have given us nothing, no numbers, no connections, no names. This is regrettable."
India handed over a dossier containing the evidence to Pakistan on Monday. According to the Pakistani spokesperson, the interview happened three weeks before that.

Ramalinga Raju in Hyderabad, claims his lawyer

Hyderabad, Jan 8 (IANS) Beleaguered former Satyam Computer founder-chairman B. Ramalinga Raju is in this city and has no intention to avoid the process of law, his lawyer S. Bharat Kumar claimed Thursday.
'My client B. Ramalinga Raju is very much available in Hyderabad. He denies reports appearing in a section of media that he is absconding or has fled from the country,' Kumar said in a statement.
Kumar said Raju engaged his services to represent him in the legal matters pertaining to his statement to the Satyam board Wednesday.
'Under instructions from my client, I communicate that Raju had made it very clear that he was prepared to subject himself to the law of the land and face consequences arising thereof. Should the need arise, Raju will make himself available for probe or any legal process by the agencies of the government,' the statement said.
'At the cost of reiteration, I make it clear that Raju has no intention to avoid the process of law,' Kumar added.
Raju became incommunicado after sending a letter to Satyam board Wednesday morning, and confusion prevailed after a TV channel reported that he had left either for the US or Dubai.
Raju is believed to have met nobody in the last two days. It is also possible that he might have handed over his letter to company officials before becoming incommunicado.
The Hyderabad police are reportedly trying to find Raju's whereabouts.
The Andhra Pradesh government has ordered a probe by crime branch. Police Commissioner B. Prasada Rao Wednesday said the police would act only if a shareholder or regulator lodges a complaint against Raju.
Some police teams were also sent to Satyam offices in the city to trace him but were unsuccessful.
A team of officials from market regulator SEBI (Securities and Exchange Board of India) arrives here Thursday to begin a probe amid speculation that police might arrest Raju after he confessed to a Rs.70-billion (Rs.7,000-crore) fraud Wednesday.

Two lawsuits filed against Satyam in US

Investors in Satyam Computer Services Ltd's American Depositary Receipts (ADRs) have filed two class action suits against the Indian software services firm, the law firms representing the investors said on Thursday.
Vianale and Vianale LLP and Izard Noble LLP have filed suits alleging Satyam and its top executives violated federal securities laws by issuing false and misleading financial statements, the law firms said in separate releases.
On Wednesday, Satyam's founder and chairman Ramalinga Raju resigned and said profits had been falsely inflated for years, sending the company's shares down 80 percent in Mumbai.
Trading in Satyam's ADRs was suspended before the opening of U.S. trade on Wednesday
Izard has filed a lawsuit in the United States District Court for the Southern District of New York, while Vianale's suit is pending in the Manhattan federal court.

Q+A - How did Satyam pull off India's biggest corporate fraud?

Reuters - The government vowed to strengthen laws to prevent corporate fraud after Satyam Computer, the country's fourth-largest software company, shocked investors by revealing profits had been falsely inflated for years.
Chairman Ramalinga Raju resigned on Wednesday after revealing India's biggest corporate scandal in memory, sending the company's shares plunging nearly 80 percent.
The following is an overview of how the fraud escaped detection for so long and what compelled a soft-spoken man born into a family of farmers to risk all.
Q: How did Satyam escape detection?
A: On the face of it, New York-listed Satyam did everything by the rulebook, with an international firm auditing its books, declaration of accounts in accordance with Indian and U.S. standards, and the requisite number of independent directors with excellent credentials, including a Harvard business school professor and a former federal cabinet secretary.
Raju, in his now famous 5-page letter outlining the deception, said no other board member -- past or present -- was aware of the financial irregularities.
Regulators were blindsided, and analysts and experts say there are "systemic flaws" in accounting and audit practices.
About $1 billion, or 94 percent of the cash, on the company's books was fictitious, Raju said, and manipulation of the cash flow may be a reason why the fraud was undetected.
"Companies have manipulated P&L (profit and loss) accounts before, but cash flow is the Holy Grail -- you don't tamper with it," said Saurabh Mukherjea, an analyst at UK-based research firm Noble Group.
"Auditors generally assume if there is cash, things are OK. But there are plenty of accounting and governance loopholes."
India also lacks a culture of dissent, with shareholders and independent directors reluctant to question company founders.
Q: What was the motive?
A: India's $50-billion information technology industry -- the poster child for India's economic liberalisation and rapid growth -- expanded at a scorching pace on the back of outsourcing demand from Western firms.
At the height of the boom, top software firms Tata Consultancy Services, Infosys Technologies, Wipro and Satyam consistently reported annual 50-percent increases in profits every quarter.
Pressure to maintain this pace of growth, please investors and shareholders and justify inflated P/E multiples during a six-year bull run on the stock market have all been cited as reasons why Satyam cooked the books.
Some news reports say Raju was an aggressive investor in failed dotcoms, and the family also put money in real estate.
Raju, in his letter, said he had "not benefited in financial terms" as a result of the inflated accounts.
Q: Are there other Satyams out there?
A: Most certainly, say analysts and industry experts.
While there has been a plea from chief executives across the board against painting all of corporate India with the same brush, Noble Group estimates at least a fifth of the top 500 listed companies practice "creative accounting".
"At its most innocent it is not illegal, but account manipulation is very pervasive," said Mukherjea.
Q: What needs to be done to prevent another Satyam?
A: Tighter rules for accounting and corporate governance, including appointment of independent directors by selection committees, and greater oversight from regulatory and government authorities.
Noble Group also suggests separation of audit and consultancy functions at companies, and quicker publication of annual reports.

Raju may have left for US for Upaid case

Amid speculation over his whereabouts, B Ramalinga Raju, who stepped down as chairman of Satyam [Get Quote] Computer after admitting to financial irregularities, is believed to have left for the United States in connection with a court case.
Speculation mounted when a TV channel reported late on Wednesday that Raju may have gone to Dubai. "We have no idea of where Raju is," a Satyam spokesperson told PTI over phone when asked if he had left for the US in connection with a case filed by a British Telecom solution firm Upaid.
Raju was also not reachable on his mobile phone despite several attempts, but police sources said that Raju left for Texas on Wednesday morning from the Hyderabad Airport.
Earlier in the day, Andhra Pradesh Chief Minister Y V Rajasekhara Reddy had said that he would refer the Satyam matter to CB-CID for investigation.
Upaid had filed a petition in Texas seeking details of the $1.6 billion acquisition of two Maytas firms, promoted by Raju's family, before Satyam dumped the deal after attack from investors.
In its petition, Upaid had demanded presence of Raju and senior directors of Satyam for questioning by its lawyers.

Panic grips Satyam employees

Hyderabad: The pink slips haven't arrived yet, but the uncertainty is killing for the 53,000 employees of Satyam, particularly at a time when the IT industry is going slow on recruitment.Ranked among the top three employers in India last year, Satyam's placement tests were a rage among techies, who compared notes through the internet to make it to the company.Satyam was ranked the second best employer in 2007 by Hewitt Associates in a study partnered by Wall Street Journal Asia."By God's grace I'm a Satyamite..." read a message posted by a Jaipur tech student who got through Satyam in February 2008, when the company was already fudging accounts.
"We are now worried about our jobs," said Raghu K, another Satyamite, dismayed by today's revelations of accounts fraud by the company's iconic founder Ramalinga Raju. The possibility of a takeover too looks distant, further compounding the worries of employees."Initially, our reports suggests that the employees of the IT firm were quite scared about their fate. We were trying to reach the employees but could not get through their board number," Karthik Shekhar, General Secretary of BPO-IT Union UNITES Professionals India, told PTI.UNITES Professional India, which has 1800 members, said that its website has got 7,000 hits from Hyderabad since last night."Its not only the employees, their peers and relatives are also coming to our Hyderabad office after the announcement to make out what we can do for them," he added.Panic-stricken employees were seen in small groups outside the corporate office, discussing the issue. However, they remained tight-lipped before the media. "We hope whoever takes over the company will put things right," Satyamite Raghu said.Most of the employees are also worried about their financial commitments like repayment of loans.C R Aravinda, a junior employee, said, "The only thing we can do is to work hard. We are serving clients as usual." A senior official of software industry body NASSCOM on condition of anonymity said: "If the need be, we may request other member companies to accommodate them." However, Satyam's interim CEO Ram Mynampati, in a statement to employees, apologised "for the uncertainty and inconvenience that this incident has caused to you and your families." "We will now be a better company and we shall soon be a successful case study of how organisations have turned over a new leaf," he said.He said the company would also meet the employees onsite and in these sessions, the company would explain to them what happened, and articulate the actions that are being taken to retain your confidence in the company."A series of extremely unfortunate events led to this. A SWAT team, consisting of senior leaders, has been formed. Many of them are Satyam veterans with a minimum of 10 years experience and more than 20 years in the industry," he said.This team will support him to steer Satyam through this challenging phase. The team represents all customer facing units, key horizontal competency units and critical support units, he said.

Zawahri urges attacks on Israeli, Western targets

Al Qaeda's second-in-command, in an Internet message, called on Muslims on Tuesday to strike Western and Israeli targets around the world over Israel's raids on the Gaza Strip.
"Hit the interests of the Zionists and crusaders wherever and in whichever way you can," Ayman al-Zawahri said in an audio tape posted on Islamist websites

Pakistan Occupied Kashmir gets new Prime Minister

Muzaffarabad, Jan 7 (ANI): The newly elected Prime Minister of Pakistan Occupied Kashmir (POK), Sardar Yaqub, took oath of office.
POK President Raja Zulqarnain Khan administered the oath on Tuesday, the Online reported.
Former POK Prime Minister Sardar Attique Ahmed was removed from office in a no-confidence vote amid allegations of corruption and nepotism; the Daily Times quoted sources, as saying.
Attique received only 17 votes against 31 in favour of Yaqub, they added.
Attique accused the government in Islamabad of engineering his ouster.
Attique's supporters chanted anti-Zardari slogans outside the legislative assembly in Muzaffarabad.
"The central government interfered in our political system at a time when India was planning to attack," he told reporters.
Attique's ouster came amid a split in his Muslim Conference party. Yaqub leads the party's breakaway faction that has the backing of the opposition including the PPP.
Raja Farooq Haider, who introduced the no-confidence motion, claimed Attique's government had been working for the partition of Kashmir.

Satyam scam: Corporate India’s biggest fraud

Ramalinga Raju’s letter of admission came as a shocker to corporate India on Wednesday morning. Outgoing CEO of the IT major admitted fraud to the tune of Rs 40 billion and said that the balance sheets had been inflated for years. He admitted that Maytas deal was the last ditch effort to get value for the fictitious assets. The development is expected to have wide ranging impact and has sent ripples across Bombay Stock Exchange. The accounts of Satyam are expected to be sealed as the day progresses….Latest Headlines
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Satyam chief admits fraud; quits

Satyam auditor mum on fudging charges

New Delhi: Satyam's auditors PwC, which is under the scanner of the government along with auditing regulator ICAI for its role in the Rs 8,000 crore financial fraud in the IT company, was conspicuous with its non-committal stance on the developments."We have learnt of the disclosure made by the Chairman of Satyam Computer Services and are examining the contents of the statement," a PriceWaterhouseCoopers spokesperson said late this evening in response to flood of queries since morning.The spokesperson said, "We are not commenting further on this subject due to issues of client confidentiality." Earlier in the day, officials in Ministry of Corporate Affairs said that the government would probe the role of PwC in the episode.
Corporate Affairs Minister Prem Chand Gupta told reporters that the misrepresentation of accounts, if genuine, is "shameful" and the ministry has already asked the Institute of Chartered Accountants of India (ICAI) and the Institute of Company Secretaries of India (ICSI) to look into the role of the auditors and company secretaries in the case.
ICAI President Ved Jain said that any member of the body found guilty in the Satyam fraud would be severely punished and the auditors could even be barred from practicing, for lifetime.Reacting to the developments, another consultancy and auditing major KPMG's Chief Operating Officer Richard Rekhy said that it did not sound possible that internal auditors were not in the know of the financial wrongdoings.Grant Thornton's National Managing Partner Vishesh Chandiok said that it was not necessary that the big auditors were on top in terms of quality also.

Mind-boggling fraud will be probed: YSR

New Delhi: Terming the Satyam Computers' financial fraud as "mind-boggling", Andhra Pradesh Chief Minister Y.S. Rajasekhara Reddy on Wednesday said his government would order an inquiry into the "fudging" of accounts and do "whatever is needed to be done". "The total figures are really mind-boggling," and as per the statement of Ramalinga Raju, the "fudging" of accounts was a "fraud", Reddy told a press conference when asked to comment on the collapse of the Hyderabad-based IT company.
"We will ask the CB-CID to hold an immediate preliminary inquiry to look at the criminal angle into the entire episode," he said. When asked why not Raju be arrested as per his own statement, Reddy said "that is what I am trying to tell. We will take every possible step. Whatever is needed will be done". The Chief Minister said that he would also ask his officials to look into various problems and issues concerning this episode.

Ajmal Kasab is a Pakistani national, admits Pakistan

Islamabad/New Delhi: A day after India's Minister of State for External Affairs Anand Sharma urged Pakistan to own up the nationality of Ajmal Kasab, the lone terrorist captured during the Mumbai carnage as the "first step" to indicate its intention to cooperate in the probe into the incident, Islamabad did just that. "Pakistani authorities, during the course of their own investigations into the Mumbai carnage have established the identity of the only surviving terrorist Ajmal Kasab as a Pakistani national," Dawnnews reported on its website. It also quoted a high-ranking government official as saying that because of the nature of his crime the government has still not taken any decision on whether to provide him with counsellor access."The top official said the investigations had started soon after the initial reports had suggested that Ajmal Kasab may possibly be a Pakistani national," Dawnnews said. "However, the authorities wanted to be doubly sure of his identity as there existed no record of Kasab and his family in the National Data Base which is maintained by NADRA. Details of the preliminary investigations submitted to the government have still not been made public," it added. The official said Kasab is the son of Amir Kasab and Mrs Noor Illahi. The identity of others militants killed in Mumbai carnage is yet to be established but senior security officials told Dawnnews that preliminary investigations "have established that these militants were operating on their own and had absolutely no link with any section of the country's security apparatus. "A formal announcement in this regard is expected in the next few days," Dawnnews said.Speaking in New Delhi Tuesday, Sharma had said: "Let them first acknowledge that Kasab is a Pakistani. Other things can follow after that." He was responding to queries on Islamabad's offer for a joint probe into the Mumbai attacks.

Pak does not want war with India: Qureshi

Kabul, January 7 (ANI):Pakistan's Foreign Minister on Wednesday said that his country does not want war with India.Shah Mehmood Qureshi while on his trip to Afghanistan addressing a news conference said that Pakistan wants peace, but will fight back if attacked.
Indian Prime Minister Manmohan Singh on Tuesday accused Pakistan of whipping up war hysteria and that Pakistani agencies were linked to the Mumbai attacks in November which killed 195 people.

Obama's biggest challenges will be Iran, Pakistan: Hadley

Washington, Jan 7 (ANI): Outgoing US national security adviser Stephen Hadley has said that Iran is the biggest challenge President-elect Barack Obama will face in the Middle East and adds that the next administration's top priority should also be aimed at stabilizing an increasingly volatile Pakistan.
He further said that more sanctions would be needed to force Tehran to forgo its nuclear ambitions and support for extremists.
In a nearly hour-long interview with media, Hadley said the Bush White House has been trying to "shore up and store up leverage" on Iran to bequeath to the Obama Administration.
Obama's challenge, he said, will be to use those sanctions to force Iran to change its behavior, The News reported.
Saying that European officials have pointed to Tehran's dependence on gasoline imports and its need for additional refining equipment, Hadley added "one of the questions is whether these kinds of vulnerabilities provide a potential source of leverage, and this is the kind of dialogue that we will continue to have with the Europeans."
While the Middle East presents challenges, he said Obama might also find his biggest foreign policy opportunity there, in the form of a peace accord between Israel and the Palestinians.

Pakistan finally owns up to Kasab; ISI chief says 'no war'

Islamabad/New Delhi/Washington, Jan 7 (IANS) After being in denial mode for weeks, Pakistan finally admitted Wednesday that Ajmal Amir Kasab, the lone terrorist captured during the Mumbai carnage, was indeed a Pakistani national but was unsure whether it would provide him consular access as he has asked for to defend himself.
'Pakistani authorities, during the course of their own investigations into the Mumbai carnage have established the identity of the only surviving terrorist Ajmal Kasab as a Pakistani national,' Dawnnews reported on its website.
The admission comes a day after Indian Prime Minister Manmohan Singh, in a hard-hitting speech, held 'official agencies' of the Pakistan government complicit in the Mumbai attack and accused Islamabad of having 'utilised terrorism as an instrument of state policy against India.'
Also on Tuesday, India's Minister of State for External Affairs Anand Sharma urged Pakistan to own up Kasab's nationality as the 'first step' to indicate its intention to cooperate in the probe into the Mumbai mayhem.
Dawnnews also quoted a high-ranking government official as saying that because of the nature of Kasab's crime, the government has still not taken any decision on whether to provide him with counsellor access.
'The top official said the investigations had started soon after the initial reports had suggested that Ajmal Kasab may possibly be a Pakistani national,' Dawnnews said.
'However, the authorities wanted to be doubly sure of his identity as there existed no record of Kasab and his family in the National Data Base which is maintained by NADRA. Details of the preliminary investigations submitted to the government have still not been made public,' it added.
The official said Kasab is the son of Amir Kasab and Mrs Noor Illahi.
The identity of others militants killed in Mumbai carnage is yet to be established but senior security officials told Dawnnews that preliminary investigations 'have established that these militants were operating on their own and had absolutely no link with any section of the country's security apparatus.
'A formal announcement in this regard is expected in the next few days,' Dawnnews said.
In other developments Wednesday, Defence Minister A.K. Antony asserted that India had 'all available and possible options' open and asked Pakistan to book those who gave 'inspiration, direction and support' to the Mumbai attacks and to 'dismantle' the terror outfits functioning from its territory.
'There are two things. Those persons who gave inspiration, direction and support (to the terrorists in Mumbai) should be booked. Secondly, more than 30 terror outfits are active across the border. To dismantle them is the duty of the (Pakistani) government,' Antony told reporters on the sidelines of a function here.
'After 26/11, there are no serious attempts to disband the terror outfits across the border and that is a major worry.... We are examining all available, possible options to prevent a repeat of this kind of infiltration and tragic incidents like what happened in Mumbai,' Antony said, declining to elaborate on the options available.
On its part, the US reiterated that the Mumbai attacks originated from Pakistan, but wanted New Delhi and Islamabad to work together to bring those responsible to justice and prevent future attacks.
'Well, we've talked about the origins of the attack coming from Pakistani soil. Secretary (of State Condoleeza) Rice, during her visit to the region, said that herself,' State Department Spokesman Sean McCormack said Tuesday.
But 'I would look at one part of this exchange as encouraging; that is, that there is an exchange of information here between India and Pakistan,' he said when asked if the US shared India's conclusion that those responsible for the Mumbai attacks were at least supported by official agencies in Pakistan.
Meanwhile, Pakistan's spy chief has categorically stated there would not be a war with India in the wake of the Mumbai attacks and that Islamabad's enemy is not its eastern neighbour but terrorism.
'We may be crazy in Pakistan, but not completely out of our minds. We know fully well that terror is our enemy, not India,' Inter-Services Intelligence (ISI) chief Lt. Gen. Ahmad Shuja Pasha told German newsmagazine Der Spiegel in an interview.
'There will not be a war,' he declared confidently, adding: 'We are distancing ourselves from conflict with India, both now and in general.'

US Ambassador meets Pranab, Narayanan

New Delhi, Jan 7 (PTI) The US Ambassador to India David C Mulford met External Affairs Minister Pranab Mukherjee and National Security Advisor M K Narayanan today amid reports from Pakistan that Islamabad has accepted that Mumbai terror accused Amir Ajmal Kasab was a Pakistani national. Mulford met Mukherjee in the afternoon and is understood to have discussed the evidence provided by India of Pakistan's involvement in Mumbai terror attack.
Other than Pakistan and the US, India has shared this evidence with China, the UK and Israel. Later in the evening, Mulford met Narayanan in the Prime Minister's Office in South Block.
Sources said reports of Pakistan's Advisor to Prime Minister on security issues, Mahmud Ali Durrani, accepting Kasab, the lone terrorist captured from Mumbai attack, being a Pakistani figured in the meeting. Mulford had told reporters yesterday that the Mumbai attacks were "managed" from Pakistan and said a FBI team will be going to that country to carry on the probe.
He had also played down the fears of an Indo-Pak war, saying there was no such possibility.

European investors unfazed by "India's Enron"

European investors remain upbeat about India despite an accounting scandal at IT company Satyam Computer Services that sent Indian markets tumbling on Wednesday.
Shares in the IT group fell almost 80 percent after founder and chairman Ramalinga Raju admitted inflating the company's reported cash and bank balances by over 50 billion rupees ($1 billion).
While shaken by what has been dubbed "India's Enron", some investors say they will wait for signs of widespread malfeasance among Indian companies before deciding whether to change their investment policy on India.
"We won't change our view of India, unless we find more evidence that there is a systemic problem and that's not the view of our emerging markets desk," said George Dallas, director of corporate governance at UK-based F&C Investments, which manages $90 billion.
Some investors do not think the scandal will have broader implications for corporate governance or transparency among India's companies.
"Corporate governance in many emerging markets companies is actually better than in more developed markets. It has needed to be robust in order to attract capital," said Christoph Avenarius, an alternative investments and emerging markets specialist at Credit Suisse.
But Jigar Shah, senior vice-president at Kim Eng Securities, told Reuters more companies in India are likely to come under scrutiny and there is a possibility that investments in India will be affected.
There are also likely to be some repercussions for the whole stock market, said Deepak Lalwani, director-India at London stockbroker Astaire & Partners.
"It's a black day for India as far as governance is concerned. This is a bolt from the blue and is bound to raise questions about other companies as well and about corporate governance in India generally," said Lalwani, who noted that the word Satyam means "truth" in Sanskrit.

TEXT - Satyam chairman Ramalinga Raju's letter

The chairman of Satyam Computer Services resigned on Wednesday, saying profits had been inflated over the last several years.
Following is the text of his letter, which was released by the Bombay Stock Exchange.
Note: references using Indian numerical system of crores and lakhs have been converted to Western system.
-------------------------------------------------------------
To the Board of Directors
Satyam Computer Services Ltd.
From B. Ramalinga Raju
Chairman, Satyam Computer Services Ltd. January 7, 2009
Dear Board Members,
It is with deep regret, and tremendous burden that I am carrying on my conscience, that I would like to bring the following facts to your notice:
1. The Balance Sheet carries as of September 30, 2008
a. Inflated (non-existent) cash and bank balances of 50.40 billion rupees ($1.04 billion) (as against 53.61 billion reflected in the books).
b. An accrued interest of 3.76 billion rupees which is non-existent.
c. An understated liability of 12.30 billion rupees on account of funds arranged by me.
d. An overstated debtors position of 4.90 billion rupees (as against 26.51 billion reflected in the books)
2. For the September quarter (Q2) we reported a revenue of 27.00 billion rupees and an operating margin of 6.49 billion rupees (24 pct of revenues) as against the actual revenues of 21.12 billion rupees and an actual operating margin of 610 million rupees (3 percent of revenues). This has resulted in artificial cash and bank balances going up by 5.88 billion rupees in Q2 alone.
The gap in the Balance Sheet has arisen purely on account of inflated profits over a period of last several years (limited only to Satyam standalone, books of subsidiaries reflecting true performance). What started as a marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years. It has attained unmanageable proportions as the size of company operations grew significantly (annualized revenue run rate of 112.76 billion rupees in the September quarter, 2008, and official reserves of 83.92 billion rupees). The differential in the real profits and the one reflected in the books was further accentuated by the fact that the company had to carry additional resources and assets to justify higher level of operations -- thereby significantly increasing the costs.
Every attempt made to eliminate the gap failed. As the promoters held a small percentage of equity, the concern was that poor performance would result in a take-over, thereby exposing the gap. It was like riding a tiger, not knowing how to get off without being eaten.
The aborted Maytas acquisition deal was the last attempt to fill the fictitious assets with real ones. Maytas' investors were convinced that this is a good divestment opportunity and a strategic fit. Once Satyam's problem was solved, it was hoped that Maytas' payments can be delayed. But that was not to be. What followed in the last several days is common knowledge. I would like the Board to know:
1. That neither myself, nor the Managing Director (including our spouses) sold any shares in the last eight years -- excepting for a small proportion declared and sold for philanthropic purposes.
2. That in the last two years a net amount of 12.30 billion rupees was arranged to Satyam (not reflected in the books of Satyam) to keep the operations going by resorting to pledging all the promoter shares and raising funds from known sources by giving all kinds of assurances (Statement enclosed, only to the members of the board). Significant dividend payments, acquisitions, capital expenditure to provide for growth did not help matters. Every attempt was made to keep the wheel moving and to ensure prompt payment of salaries to the associates. The last straw was the selling of most of the pledged share by the lenders on account of margin triggers.
3. That neither me, nor the Managing Director took even one rupee/dollar from the company and have not benefitted in financial terms on account of the inflated results.
4. None of the board members, past or present, had any knowledge of the situation in which the company is placed. Even business leaders and senior executives in the company, such as, Ram Mynampati, Subu D, T.R. Anand, Keshab Panda, Virender Agarwal, A.S. Murthy, Hari T, S.V. Krishnan, Vijay Prasad, Manish Mehta, Murali V, Sriram Papani, Kiran Kavale, Joe Lagiola, Ravindra Penumetsa; Jayaraman and Prabhakar Gupta are unaware of the real situation as against the books of accounts. None of my or Managing Director's immediate or extended family members has any idea about these issues.
Having put these facts before you, I leave it to the wisdom of the board to take the matters forward. However, I am also taking the liberty to recommend the following steps:
1. A Task Force has been formed in the last few days to address the situation arising out of the failed Maytas acquisition attempt. This consists of some of the most accomplished leaders of Satyam:, Subu D, T.R. Anand, Keshab Panda and Virender Agarwal, representing business functions, and A.S. Murthy, Hari T and Murali V representing support functions. I suggest that Ram Mynampati be made the Chairman of this Task Force to immediately address some of the operational matters on hand. Ram can also act as an interim CEO reporting to the board.
2. Merrill Lynch can be entrusted with the task of quickly exploring some Merger opportunities.
3. You may have a restatement of accounts' prepared by the auditors in light of the facts that I have placed before you.
I have promoted and have been associated with Satyam for well over twenty years now. I have seen it grow from few people to 53,000 people, with 185 Fortune 500 companies as customers and operations in 66 countries. Satyam has established an excellent leadership and competency base at all levels. I sincerely apologize to all Satyamites and stakeholders, who have made Satyam a special organization, for the current situation. I am confident they will stand by the company in this hour of crisis.
In light of the above, I fervently appeal to the board to hold together to take some important steps. Mr. T.R. Prasad is well placed to mobilize support from the government at this crucial time. With the hope that members of the Task Force and the financial advisor, Merrill Lynch (now Bank of America) will stand by the company at this crucial hour, I am marking copies of this statement to them as well.
Under the circumstances, I am tendering my resignation as the chairman of Satyam and shall continue in this position only till such time the current board is expanded. My continuance is just to ensure enhancement of the board over the next several days or as early as possible.
l am now prepared to subject myself to the laws of the land and face consequences thereof.
(B. Ramalinga Raju)
Copies marked to:
1. Chairman SEBI
2. Stock Exchanges