Date:13/01/2009 URL: http://www.thehindu.com/2009/01/13/stories/2009011359930500.htm

Andhra Pradesh - Hyderabad

Telugu Desam dares probe against Naidu

Special Correspondent

Mysoora refutes allegations that party chief had a lot of shares in Satyam

‘YSR favoured Maytas for projects ranging from irrigation to rail’
CID urged to probe this aspect, instead of focussing only on Satyam chief

- Photo: G. Krishnaswamy

Taking stock: TDP chief N. Chandrababu Naidu chairing the party’s Polit Bureau meeting in Hyderabad on Monday.

HYDERABAD: Telugu Desam on Monday dared the Congress government to order an inquiry and prove the charge that the party president N. Chandrababu Naidu had “lot of shares” in Satyam.

At a press conference, TDP spokesman M. V. Mysoora Reddy dismissed the charge as “nonsensical” and said it was amusing to find Chief Minister Y. S. Rajasekhara Reddy throwing such hints, forgetting that he had all the powers at his command to get at the truth. “It smacks of his irresponsibility”.

In fact, Dr. Reddy should explain what vested interest he had in favouring Maytas Infra for all the projects ranging from irrigation to rail and include this aspect in the CID inquiry instead of confining it to only Satyam’s former chairman B. Ramalinga Raju, he said.

By focussing on Mr. Raju, the government was protecting him and diverting the attention of the people from Maytas Infra and other companies.

Not innocent

The TDP leader said the former Satyam chairman was not as innocent as he claims to be in his ‘confession statement’ and released copies of documents to prove his charge that he had indeed used the cash surplus to inflate the shares and then sell them away. The promoters’ holding has progressively come down from 15.67 per cent in March 2005 to 14.02 in 2006 and then to 8.45 in 2007.

This way Mr. Raju had amassed Rs. 5,000 crore which was diverted to Maytas Infra, other firms and for purchasing large extents of land, he alleged.

The diversion was done deliberately as Mr. Raju saw better prospects in land and infrastructure than in IT.

The Congress government only helped Mr. Raju by doling out contracts worth Rs. 33,000 crore to Maytas Infra in joint venture with other firms.

The diversion of funds is partly reflected in the phenomenal growth of Maytas Infra’s turnover from a mere Rs.100 crore in 2003 to Rs. 223 crore in 2006, Rs. 600 crore in 2007 and Rs. 1,600 crore in 2008, he added.

In fact, Mr. Mysoora Reddy was apprehensive of SEBI measuring up to the task of inquiring Satyam as it did not do anything when Mr. Raju was selling shares after inflating them.