Satyam 'weeping orphan' adopted by Tech Mahindra: CLB
Press Trust of India / New Delhi Apr 16, 2009, 15:32 IST
Calling Satyam a "weeping orphan", the Company Law Board (CLB) today said the Hyderabad-based company will now be adopted and nurtured by Venturbay, a subsidiary of Tech Mahindra.
Preferring to call its order as "Adoption of Orphan Satyam" or "Orphan Satyam Adopted", CLB Chairman S Balasubramanian said, having won various laurels, mostly in relation to corporate governance, Satyam "became a weeping orphan overnight when its promoter B Ramalinga Raju abandoned it after making a confessional statement."
Satyam's founder Raju abandoned the company after admitting accounting fraud to the tune of over Rs 7,000 crore on January 7, said the CLB order while clearing the decks for takeover of the company by Tech Mahindra.
Complementing the government-nominated board for selecting a technically and financial competent strategic investor, the CLB chief said, Venturbay will "adopt and nurture ailing Satyam."
Earlier, the order said, the government reconstituted the Satyam board "to wipe out its (Satyam's) tears and nurture the company which was necessary in the interest of all the stake holders".
The government-appointed board headed by Nasscom past president Kiran Karnik, the order said, "acted not only as directors but also like foster fathers to heal the wounds of the orphaned Satyam."
It is pre-posterous that CLB can make such comment. The very fact that even the Government had to clue as to how Ramalinga Raju had put to shame the so-called robust regulatory system of India. Indian government and the Company Law Board had nowhere to hide. It is only in its best interest had the CLB added else it would not have any face to show and would have laid a precedent which would have had CLB licking the dirt following massive fraud perpetuating in all companies.
CLB Chairman S Balasubramanian, whoever this guy is, seems to be pretty sadistic and short of either information or brains, to come out with a statement like that.
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