On A Loose End

The Satyam fraud seems to have come at a real bad time. The economic scene in India was taking a turn for the worse, despite the Government telling everyone that the Indian economy was fairly insulated. Two stimulus packages and three rate cuts later, the Government was still going on about the insulated economy when Ramalinga Raju decided to wake up the Government. Shaken up, the Government is, at the moment, what with the general elections staring down on them. Add to that the state assembly elections in Andhra pradesh, where Satyam is based, their woes have been compounded. Initially there were a lot of bold statements from the ministers about Satyam being a corporate matter and not having to do anything with the Political governance, now murmurs have started about a potential bailout package by the centre. Does Satyam really merit a bailout? Or will it be just an exercise in killing the truth? The politicians of this country have as usual confused the term bailout. Bailout is the a...

Update - Mr Raju has been granted bail in the Rs 25000 Crore fraud. This after nine months of treatment, for God only knows what, (He couldn't have been pregnant) in a hospital. What he was there for, what kind of disease was this which could not get cured for nine months and will get better now that he has been granted bail. The health dept is obviously in connivance with Mr Raju. The judiciary too seems to have now joined hands with the rest of the governing agencies and has granted bail to Raju. Satyam - the word means truth in Hindi. The company sure did not live up to its name. The Chairman B. Ramalinga Raju’s has admitted that Satyam Computer Services Ltd’s Balance Sheet was manipulated rather fabricated had its usual effect on the market, the sensex went on a downhill slide and no one knows where it will stop. It is a fraud worth Rs 50 billion, no mean amount. In the long run, the Satyam fraud will have long reaching consequences on how the markets operate, corporate gover...