Press Release

We are releasing a letter written by the CPI(M) General Secretary Prakash Karat to Prime Minister Manmohan Singh on January 17, 2009 urging extension of the probe into the Satyam scandal to cover the Maytas concerns also.

Text of the Letter
Dear Shri Manmohan Singh,

Since the fraudulent dealings of the promoter of Satyam Computers Services became public, there is growing evidence that funds were siphoned off from Satyam to the Maytas group of companies which are run by the family members of Mr. Ramalinga Raju.

A huge amount of land has been accumulated by the Maytas group of companies all over Andhra Pradesh and in some other states. Even in the Hyderabad Metro Rail Project, Maytas company has been given prime land. Some of the land dealings are obviously irregular and are violative of the law. One such instance is the allotment of 50 acres of government land in Vishakapatanam district to Satyam Computers Ltd.

In December 2008, Shri EAS Sharma, former Secretary of the Government of India had written to the state authorities regarding the violation of the Vishakapatanam Urban Development Authority’s master plan and the CRZ regulations in handing over this land. (copy enclosed) Further, the land was sold at a far lower price than the market value. A copy of the letter by the Secretary of the District Committee of the CPI(M) to the Collector on how the land has been occupied by Satyam Ltd is also enclosed. There are other such land deals and projects involving the Satyam-Maytas group of companies.

The Government has ordered a probe by the Serious Fraud Investigation Office into the Satyam Computer Services Ltd. This alone will not be sufficient. In the light of the nexus between the Satyam-Maytas group of companies, the probe should be extended to all the Maytas concerns.

An investigation to uncover all the illegal dealings of these companies is essential to restore public confidence.

Prakash Karat
General Secretary