The action of the Indian government following the alleged fraud case involving Satyam Computer Systems has saved over 50,000 jobs and the company from total collapse, said a senior Indian government official.
R. Bandyopadhyay, secretary of India’s Ministry of Corporate Affairs, said the government’s decision to remove suspects and put an interim setup to run the company’s affairs was the correct approach.
Bandyopadhyay, who was in Bahrain to attend a two-day seminar organized by the Institute of Chartered Accountants of India, Bahrain Chapter, said the Indian government has taken several steps to enforce strict corporate governance guidelines following the Satyam fraud.
He said the Ministry of Corporate Affairs is handling 760,000 companies in India. “The government is using the Satyam case as an eye-opener for the future as the Ministry of Corporate Affairs had organized India Corporate Week at the end of December. In addition, we have also organized 124 workshops and seminars across the country to create greater awareness for corporate sector companies and businesses,” he said.
Talking about the growth of the Indian economy, Bandyopadhyay said the Indian economy was also affected by the global crisis but not at the level that other countries are affected.
“We have seen the closing of 2009 very healthy and the growth is likely to reach 7.5 percent in the last quarter,” he said, adding the forecast for 2010 is likely to touch 7 percent, far ahead of many economies this year.
Through various actions, he said, we want inclusive economic growth, and steps like investors’ rights and responsibilities and online registration for investors are a few but very important steps to steer the corporate sector in the right direction.
Satyam is considered to be one of the leading outsourcing companies in India and was among India’s top five IT companies. The company employs about 53,000 people
Source:http://www.menafn.com/qn_news_story_s.asp?storyid=1093296731
