Satyam Computer Services Ltd declared yesterday that a US-based client had called off its agreement, and the Indian government broadened its search to two firms connected to Satyam’s jailed founder.
The government said the Serious Fraud Office’s examination into India’s leading corporate scandal had been passed on to comprise Maytas Properties Ltd and Maytas Infra Ltd, the two firms Satyam tried to take over in mid-December before hurriedly backing down in the face of a shareholder upheaval.
Satyam, India’s No. 4 software services exporter, was driven into problem after founder Ramalinga Raju resigned as chairman previously this month, illuminating earnings had been fallacious for years and $1 billion of cash on the books were not present.
Raju said that the pact to buy the Maytas firms was his last endeavor to resolve the trouble of fabricated assets on the Satyam balance sheet, reportedly. Maytas is Satyam spelt backwards.