GOVT NOT TO BAIL OUT SATYAM : Kamal Nath

GOVT NOT TO BAIL OUT SATYAM : Kamal Nath 19 Jan 2009, 1518 hrs IST, TIMESOFINDIA.COM NEW DELHI: Commerce and industry minister Kamal Nath on Monday made it clear that government would not bail out Satyam Computers. "There is no question of bailing out Satyam. It has strong bankers who would look for investors," Kamal Nath said. PTI reported on Sunday that the government said those who are guilty would not be let off just by payment of some fine. "We are making stiff provisions under the new Companies Bill, 2008. The number of crimes for which provisions of compounding are available under the present Act are being significantly reduced," Corporate Affairs Minister Prem Chand Gupta said. The compounding provisions allow a company or a corporate executive to pay fine by pleading guilty of financial wrong doing. The perpetrators of financial offences therefore will not be allowed to get off the hook easily, Gupta said, adding even the monetary penalty and other provisions are being made many times more stringent. As per the new Bill, he said, the penalties for the economic crimes will be increased commensurate with the gravity of offence and also the number of offences which can be compounded will be decreased. The government had introduced the new Companies Bill in Rajya Sabha to replace the existing legislation which was enacted in 1956.

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