Bombay HC Issues Notices Against Respondents In Satyam Scam

Bombay HC Issues Notices Against Respondents In Satyam Scam 1/15/2009 The Bombay High Court issued notices to the centre and 17 other respondents to file a reply in the multi-crore Satyam scam. A division bench of Chief Justice Swatanter Kumar and Justice D Y Chandarchud issued notices returnable till January 20 in response to the public interest litigation (PIL) filed by the Investor’s Grievances Forum, headed by former member of Parliament Kirit Somaiya. Mr Somaiya in the petition has sought appointment of a committee to make regulatory process more effective and protect small investors in the aftermath of the Satyam scam. Besides, state and the Union Governments, SEBI, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have also been made respondents. The PIL said ‘despite existence of market regulator Securities and Exchange Board of India (SEBI) and a plethora of laws, rules and regulations, efforts to safeguard the interests of investors in shares and securities have not been successful. Unlike other scams, this one (Satyam) is ominous for the country. Satyam’s board and auditors are guilty of negligence, breach of duty, trust and fraud.’ It also accused the auditors of taking no steps to verify the truth and ascertain and correct state of affairs of the firm. The Hyderabad-based Satyam Computer Services, its former Chairman B Ramalinga Raju, seven (former) directors and audit firm Price Waterhouse Coopers (PWC) have been made respondents to the PIL. According to the PIL, the multi-crore scam is detrimental to the country’s economic growth and progress, and it has dealt a heavy blow to the confidence of small investors some of whom have invested their life savings in the IT major. The PIL said the last couple of decades have seen a number of big and small scams, the biggest being Harshad Mehta in 1991-92 and Ketan Parikh in 2001. UNI

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