Finally, Satyam Computer?s financial fraud is turning tables and is caught in the eye of a political storm between chief minister YS Rajasekhara Reddy and the Telugu Desam Party leader N Chandrababu Naidu.

The blame game is expected to see its repercussions in the forthcoming elections as well even while leaving the IT industry perplexed. One convincing factor is that, projects with worth about Rs 30,000 crore with Maytas Infra and Properties, including the new ones, is under review by the Andhra Pradesh government.

The turn of events, which is being heavily politicised, has seen the first reaction with the Raju brothers and Srinivas Vadlamani, former CFO, remaining calm most of the time during the interrogations although the police sources claim that all the three are ?cooperative?.

Trading charges, N Chandrababu Naidu said that the Rs 7,800 crore lost from the books of Satyam Computers is parked with the chief minister YS Rajasekhara Reddy?s family. While countering this, Reddy said that it was Naidu who promoted Raju during his regime and gave excess importance to Raju right from Bill Clinton?s visit to Hyderabad. Naidu has also demanded a white paper on the whole fiasco.

Meanwhile, clarifying details regarding the projects of Maytas Infra and Properties, YS Rajasekhara Reddy said that these projects are mostly consortia-based and a review meeting about them is expected soon. With regards to Satyam, Reddy has called for permanent management changes, which would increase customers? confidence levels.

In a confident note, Reddy said that the fraud committed by Ramalinga Raju will not impact the fortunes of the Congress party in the general elections. He also ridiculed about the Opposition parties that the government had any kind of links with Maytas Infra and said that there was no truth in the allegations made by the Opposition party.

Welcoming the three-member board constituted by the Centre to oversee the immediate actions of the company, Reddy categorically said that there was a limited role for the state government. The ball is also being tossed between the Centre and state governments as to who should shoulder responsibility to help Satyam employees as immediate measures.

?The government of India is more experienced in these sorts of things. Managing company affairs is not state government?s purview. The central government has separate ministry and in their own wisdom they have formed this committee, which will look into all aspects,? he said. The immediate action is that the order books have to be saved and confidence levels with the clients have to be restored, he said.

?Whatever help, the government of India wants, we are too willing to give,? Reddy said when asked whether the state government would also nominate members to the board. He also suggested that FIIs to take over the company. While stating that crime branch-criminal investigation department (CB-CID) inquiry into the fraud does not prevent inquiry by other law enforcement agencies, if necessary, the state government would refer the case to the Central Bureau of Investigation (CBI), he added.

Meanwhile, chief financial officer Srinivas Vadlamani has been remanded to judicial custody till January 23 and the bail application is expected to be filed on Monday.