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Govt mulls Rs 2,000-cr bailout for Satyam employees. Worth taxpayers

Govt mulls Rs 2,000-cr bailout for Satyam employees. Worth taxpayers' money? | Read Story

TimePosted by IBNLive at 07:58 AM, Jan 14, 2009 | Updated at 07:26 PM, Jan 15, 2009 in Business

The Central Government is worried that the Satyam Computer Services scandal may damage the credibility of India's IT industry in the international market.

Posted by vaidya.k.iyer at 09:58 PM, Jan 23, 2009

I rest assure Mr. Ramalingraju alone cannot be a lone culpable but I could not find any genuine of his board members to join him at this hour of crisis. His personality is beyond doubt but his sobriety is to be appreciated. But it is his majesty that he does not expose who stoked him to do so for, it cannot be his sole work. Let someone announce law will take its own course then we can construe he is after it.


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Posted by bhanu.ganesh at 10:19 AM, Jan 22, 2009

No way! Government money should definitely not be used to bail out Satyam. Get hold of all the siphoned off money, sell the promoteres' personal wealth to bailout the company.


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Posted by reddy1369 at 10:37 AM, Jan 17, 2009

Why should this even be discussed? The Goverment should bail them out. The reasons are as simple as this.. Satyam is going to repay the money for Sure. All they lack now is Liquidity. If the Goverment is delyaing in helping them then the problem would get more worse. More people loosing Jobs and the economy taking huge hit.
The satyam scenario is no different from what has happend in US..Satyam is too big to fail. To convince the goverment the satyam management and Employess must be willing to accept pay cuts.


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  lessPosted by masesha at 10:09 AM, Jan 17, 2009

Which international firm which constitute 95% of IT companies business will want to deal with Sathyam in the future?, get real you people. Sathyam as it exists now is doomed. In the US good compaines which had losses were bailed out. In India we are thinking of bailing out a fraud ? It will be a bottomless pit, with the politicians recovering their lost black money via the tax payer in the name of saving sathyam employees. What a joke.


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Posted by sachakraborty at 05:35 PM, Jan 19, 2009

International companies have great minds and they know a company is maid of workers and not a CEO.When you get some curable disease you are not thrown at waste box you are treated.

If you are real then you will know that there are huge companies that are doing business with Satyam because they believe in deliverables and not on funny logic that if former CEO had done wrong than the company is wrong for ever.

You should choose your language and should not call a company fraud because Raju had only 5% share with him and the workers are more dedicated and talented than others in the industry.

My logic suggests me that profit making companies should be bailed out rather than bailing out loss making company.

This is rubbish to do funny imagination politicians will recover black money via tax payers money in the name of bail out.

In the end Satyam never asked for any bail out and for your information Tax payers money is used for business improvement and not for keeping in the museum.

Satyam and it's employees for last 2 decades have paid a lot of tax and will do so in future.


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Posted by mani.chandru at 01:32 PM, Jan 16, 2009

I think it must be YSR's pressure to UPA to bail out Satyam, as he may also have huge interests in it. While YSR blames Chandrababu Naidu, he should explain what the current government was doing all these years.

YSR and Naidu's role in Satyam and it's group should be investigated thoroughly.

Whatever may be the problem, the government has no business to bail them out from tax payers monies. Let Raju sell his 6500 acres of land and bring out all the black money and pay salaries to the employees and present directors.

I don't think Satyam's case will be investigated honestly. Soon Raju may get bail and start one more bogus company till he gets caught next time.

"Satyemave Jayate"


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Posted by mjai_ganesh at 09:25 AM, Jan 16, 2009

Current Rating:

this news should now be removed as satyam themselves have denied any kind of bailout.


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  lessPosted by pushplatasingh at 05:01 PM, Jan 15, 2009

Current Rating:

Bail out should be on loan basis & not for free. Satyam will have problem with bank loans so govt must give loan to give rest 53000 hard workers a chance to prove their worth & let not the full thing get destroyed by 5% stake holder crook called Raju who has intelligently transfered all money to Maytas. Attach Maytas to Satyam for free as it is Satyam money robbed by Raju.


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Posted by sachakraborty at 03:20 PM, Jan 16, 2009

Absolutely correct.

Satyam is well capable company to return loan.

In this process India will not loose a benchmark software farm which can bear Indian flag to Indian arena.

It can earn billions of dollars in FOREX and can contributes as it has dome in past 20 years.

We should always think that India as a nation should never a single profitable organization for all good cause.

Jai Hind.


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Posted by m.jagan at 03:48 PM, Jan 15, 2009

The Whole episode of Satyam seems to be getting on straching the back of Business honchos and political set up ...both seems to be having a hand on this as Maytas was awarded number of prjects at A.P ans satyam company taken to such glories with like a ballon and inside just an Air and no substance......

Absolutely i request your channel to spread across that pls do not use any single pie to bailout satyam ..why it should be ..Business man - politicians and other intrested parties racked in croroes of rupees in the glory days and now at the movement of crises the common man penny is shield out to bail out such fraudential comapny ........
Request you channel to take up to highest level it would be a political /econimocal Blunder to do the same, there are crores of Unemployed who are on the streets where the money can be divereted.


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Posted by oilman at 03:10 PM, Jan 15, 2009

When private aviation bosses threatened to close down operations and mock sacked 2000 employees, the Govt. quickly gave a 20,000Crore package to bail them out. Now the Govt. is working overtime to bail out another private enterprise with public money.
Contrast this with the treatment meted out to India’s most productive and highly qualified 45,000 Oil sector executives, who bailed out the government through unprecedented oil crisis. For the last two years this government could not decide on a well deserved and justified pay revision. That too after 10 long years in which our country saw tremendous economic growth.
Because of callous attitude of government and ego of few babu’s the situation was allowed to precipitate to open defiance and confrontation. What has government achieved?
-Financial loss of thousands of crores
-Complete decimation and demoralization of highly productive knowledge work force
-allowed creation of emergency like situation
-put common man to avoidable harassment and discomfort.
All this just for few hundred crores of well deserved and long overdue wage hike! And mind you all this was to come from companies own balance sheets and not from tax payers money to which oil sector is a major contributor. What wisdom…


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Posted by hpraj123 at 03:04 PM, Jan 15, 2009

There should never be a bailout for a private company. This company is on the brink due to the mismanagement and fraud of the management. It should be treated as sick industry and to follow the same steps what the Sick industries Act does with other similar companies. Let them evaluate the feasibility of reviving the company. If found feasible, then finance can be arranged through consortium of financial institutions so that the company can make profits and repay the loans in due course. Else it can be merged with a healthy IT company also.
Under this employees can also survive. At the most the government can favour by giving a few orders. But there should not be any easy tax payers money to bailout the company since it will have a bad precedent and other companies will follow suit.


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