The central government finally stepped up to save the scam-tainted Satyam Computer by announcing to induct 10 new directors within seven days. The existing directors of the IT company were fired by the government on Friday (January 9). Meanwhile the company's board meting which was supposed to be held today got cancelled following the decision of the government. The board which had nine members dwindled to five following the resignations of independent members in the wake of Maytas acquisition controversy.

 

Talking to media, Company Affairs Minister Prem Chandra Gupta said that the recent decision is taken to protect the interest of the employees and the stakeholders of the company. He added that Satyam's Law Board has atoned with government's decision of appointing new directors. The central government's recent move brought smiles on the faces of about 53,000 employees of the beleaguered IT company. The careers of all those employees were at stake as Satyam was not in a position to pay the December 2008 and January 2009 salary.

 

Meanwhile the Securities and Exchange Board of India (SEBI) seized the documents of the company and proceeded with its probe. It has also summoned the former chairman of Satyam, B Ramalinga Raju to appear before it. Both Ramalinga Raju and his brother Rama Raju were finally arrested by the Andhra Pradesh police on charges of cheating. Ramalinga Raju's confession of million dollar fraud spread like fire and caused Satyam to get de-listed from the Bombay Stock Exchange (BSE). Apart from it, the New York Stock Exchange had also stopped trading in Satyam.

 

Srinivas Vadlamani who also relinquished his post as the chief financial officer of Satyam reportedly tried to commit suicide. However, the company denied such reports. The CID which is entrusted by the Andhra government to probe the financial scam is also expected to arrest Srinivas Vadlamani.