CLB official's arrest will not affect Satyam probe: Govt

The Ministry of Corporate Affairs today clarified that the government would not order a fresh inquiry into the Satyam scandal, the biggest accounting fraud that rocked India’s corporate world early this year.

The clarification comes after the arrest of R Vasudevan, one of the senior officials who had probed Satyam, on charges of taking a bribe on November 23.

Vasudevan was a member of Company Law Board, the quasi-judicial body that looks into disputes and litigation that come under the Companies Act.

He was arrested by the Central Bureau of Investigation after he was allegedly caught while accepting a bribe of Rs 7 lakh from one of the petitioners of a case being heard by CLB.

The company secretary who was allegedly trying to bribe Vasudevan is also under custody.

Vasudevan, who joined CLB three months ago was a director in the ministry and was in charge of inspections and investigations.

The secretary of the corporate affairs ministry, R Bandopadhayay, ruled out any fresh investigation into the Satyam scandal due to Vasudevan’s arrest.

“There is no need for another investigation. The official was involved only in the preliminary stage of inquiry. The Satyam investigation was carried out by SFIO (Serious Fraud Investigation Office). So there is no relook into the matter,” he said.