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No salary in Satyam for 2 months; SEBI summons Raju

This article was posted on Jan 10, 2009 and is filed under Press Releases

Hyderabad/New Delhi: Raju, who has been untraceable since his sent in his resignation on Wednesday, is believed to be at his farmhouse at Kompally on the outskirts of Hyderabad.

While there was no confirmation from police regarding his whereabouts, police officers said they had no orders yet to arrest him.

Sebi has summoned Raju at his corporate office at 4.30 pm, Raju’s lawyer, Bharat Kumar, said. While Kumar said ‘I will be there’, he did not specify whether Raju too would be present in his corporate office to meet the Sebi officials.

A while ago, a Sebi team probing a financial fraud in Satyam Computer reached Ramalinga Raju’s house in Hyderabad, but returned as the premises was locked.

The SEBI team had first gone to Satyam office in Hyderabad on Thursday in connection with a probe ordered by the market regulator a day before.

The probe follows Satyam’s founder and former Chairman Ramalinga Raju disclosing on Wednesday financial irregularities to the tune of about Rs 7,800 crore at the company, after which he resigned.

Satyam withholds salaries for two months; layoffs feared

Satyam Computer announced holding back employees salaries for two months, even as rumours were rife that the company might lay off close to 15,000 workers in the coming days.

The offices of Satyam Computer were rife today with the talks about forthcoming pink-slips at the company, which needs over Rs 500 crore every month just to meet its staff costs and has admitted that its cash position was not encouraging.

Employees said they have received an e-mail saying the company would hold back salaries for two months and asked staffers to bear with it.

However, the company spokesperson declined knowledge of any such e-mail and the issue would be looked into.

Even as the company spokesperson denied any layoff plans as of now, the rumours put the estimated job cuts at close to 15,000 by the end of this month.

Employees at the company said on condition of anonymity that they were hearing about imminent lay-off of people who were sitting on the bench or were close to completing their assigned projects. Besides, those being retained would be asked to take substantial salary cuts, they added.

At the same time, global HT consultancy firm Hay Group’s Practice Leader Mark Thompson said that employees would suffer the most from the fraud.

Global HR consultancy firm HayGroup’s Practice Leader Mark Thompson said: “Based on past experience as with Enron, Worldcom and the Mirror Group, it is likely to be the employees who will suffer most from the fraud perpetrated by their bosses.”

source: Indian Express.

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