MCA to help Mahindra Satyam fight US lawsuit

Mahindra Satyam may soon get some more government aid. The Ministry of Corporate Affairs says it will lend the company a helping hand in facing the class action lawsuits filed against it in the US. The minister has expressed his solidarity with the company. He has said that the Ministry would try and help the company in whatever ways it can and trying to help resolve the class action lawsuits. In fact he even touched upon the subject of out of court settlement.

Here is a verbatim transcript of Pranshu Sikka's comments on CNBC-TV18. Also watch the accompanying video. 

Earlier in the day there was a board meeting of Mahindra Satyam in the capital and the key takeaways are that the company official says is on the revival track. 600 employees out of the current virtual pool have been recalled to work. Also another point which Tech Mahindra clarified was that Tech Mahindra was not looking at raising their stake to 51% as of now and that was not in option; they were happy with 42.6% holding in the company.

But the real action is happening in the Ministry of Corporate Affairs where the officials met the minister himself. The minister has expressed his solidarity with the company. He has said that the Ministry would try and help the company in whatever ways it can and trying to help resolve the class action lawsuits. In fact he even touched upon the subject of out of court settlement. He said that it was a well accepted and well received practice across the world but he said in whatever form he can extend help, the ministry would extend help.

Sources say that there maybe action against Price Waterhouse, Bangalore in this entire matter. The question of action against the two independent directors is very much present in the Serious Fraud Investigation Office (SFIO) report. When Salman Khurshid, Corporate Affairs Minister was if he was looking at action against Price Waterhouse, Bangalore as a whole, as a unit  he said, "I would like to know where exactly their relationship is and how much anybody is prepared to take responsibility for something that gone wrong because their partners have done something wrong. This is something that on which we shouldn't slam the doors right now because we don't have any information. So I would like to wait for what the Institute of Chartered Accountants of India (ICAI) has to say."

Sources are also telling us that the ministry and ICAI are working together on a design to try and ascertain the onus which can put Price Waterhouse, Bangalore but all in all a day of action for Satyam that was as well as Mahindra Satyam that is.