A quick solution was needed to clean up the Satyam scam as India’s reputation was at stake, Housing Development Finance Corp (HDFC) chairman Deepak Parekh said at an event on Wednesday. Parekh had been a part of the six-member panel chosen by the government to resurrect the maligned Satyam Computers.
“We are the global IT back office of the world and we had to somehow save this company as soon as possible,” he said at an event to launch a book, ‘The Tech Phoenix: Satyam’s 100-Day Turnaround’.
The book has been authored by TN Manoharan and V Pattabhi Ram. Retaining clients was among the many challenges faced by this panel, as other information technology companies had begun poaching Satyam’s clients, Parekh said. Apart from this, the panel had to also ensure a source of funding for the company and assure company staff that their salary would be paid. Eventually, IDBI Bank provided an unsecured ad-hoc credit line to the company.
In 2009, Satyam’s chairman and CEO T Ramalinga Raju stepped down after confessing to inflating the company’s financials. The total fraud amount was around Rs 7,000 crore. “We all were of the view that we should get the hell out as soon as possible. We have to find a process. A process that is transparent, a process that is chaired by a Supreme Court judge and divide the bids into two parts, technical qualification and financial,” Parekh said. “So first we opened the technical and some people would not qualify in that. Then, we opened the financial bids. Mahindra and Mahindra was the largest bidder, so we handed over the company and walked out.”