National

YSR encouraged amassing of wealth the easy way: Naidu

Chandrababu Naidu

HYDERABAD: Telugu Desam Party president N. Chandrababu Naidu on Friday blamed Andhra Pradesh Chief Minister Y.S. Rajasekhara Reddy for the fraud in Satyam Computer Services, saying he was encouraging amassing of wealth the easy way through largesse.

Mr. Naidu recalled that the Hyderabad Metro Rail project was awarded to Maytas Infra, a subsidiary of the IT major, rejecting all suggestions that the agreement was one-sided as 269 acres of prime land was sought to be handed over to the company. When Mr. E. Sridharan, who successfully executed the Delhi Metro, raised serious objections to the concession agreement, he was threatened with a defamation suit.

In yet another instance of favouritism, an irrigation project, Gandikota in Dr. Reddy’s native district, Kadapa, was entrusted to Maytas Infra even after trouble began brewing in the Satyam group. While the government was duty-bound to encourage entrepreneurship, it had to do so within the democratic framework. However, the Congress government showed a singular lack of faith in institutions such as the Comptroller & Auditor-General of India, the Lok Ayukta and even the Legislative Assembly, Mr. Naidu told this correspondent.

He held that all the major economic frauds, including the one involving ‘Big Bull’ Harshad Mehta, took place when the Congress was at the helm, either at the Centre or in the State.

The TDP president, who had encouraged Satyam during his stint as Chief Minister, was asked whether he was disappointed with Satyam chief Ramalinga Raju’s confessions. Without giving a direct reply, Mr. Naidu said, “Mr. Raju was among the several people whom I encouraged as my aim was to promote entrepreneurship. I always discouraged industrialists from trying to amass illegal wealth and told them that only white money could sustain future generations.”

Mr. Naidu cited the example of Heritage Foods (manufacturer of dairy products) promoted by his family to show that quick money might not be the answer to sound business practices. The value of each of the one crore shares was Rs. 74, whereas the total annual turnover was over Rs. 700 crore, he added.

Chennai Staff Reporter writes:

The Andhra Pradesh Chief Minister on Friday said the CB-CID had been asked to independently probe the Satyam fraud. He was talking to journalists after he sought investments from the Indian diaspora for development projects in Andhra Pradesh at the Pravasi Bharatiya Divas here.

Asked whether the government considered withdrawing projects awarded to Maytas Infra, the infrastructure building firm owned by the Raju family, he said the government was evaluating the developments of the last two days.

On whether a bailout for the company was being considered, Mr. Reddy said a financial package to rescue the Satyam was to be decided by the Centre.

© Copyright 2000 - 2009 The Hindu