Satyam fraud hit State's image: CM

HYDERABAD: Chief Minister YS Rajasekhara Reddy admitted that the Satyam fiasco had eroded the corporate image of the State as well as the Centre. The government was studying the situation following the financial fraud committed by Ramalinga Raju and its effect on Maytas. It was also awaiting the preliminary inquiry report, the chief minister said.“I was in Delhi, when the Satyam news broke and I immediately asked the Chief secretary to review the situation. He reported that Maytas did not indulge in any irregularity,'' Rajasekhara Reddy said.At a weekly interview to a regional TV Channel, Rajasekhara Reddy justified the measures taken by the government that include ordering a CBCID inquiry.“SEBI and the Company Law Board as well as other independent agencies can go ahead with their probes and the CBCID inquiry will not be an obstacle to them.Since Ramalinga Raju himself surrendered before the police, the department has no option but to take up the case suo motu,'' the chief minister said. Rajasekhara Reddy also justified awarding several projects to Maytas saying that they were given following all the procedures and rules. ``We have also given works to contractors like Nama Nageswara Rao (TDP) and B Krishnaiah (BJP),'' he remarked.On the charges made by TDP president N Chandrababu Naidu, Reddy said, “When then US President Bill Clinton came to Hyderabad, Naidu made well-known industrialists like Ratan Tata sit in the audience while he asked Ramalinga Raju to sit on the dais with Clinton. I did not raise any issue then. I am surprised Naidu is making baseless allegations now,'' he said. Reiterating that the government's endeavour was to protect the interests of the employees and shareholders of Satyam, the chief minister felt that the Information Technology industry should be brought under the Income Tax Act.