Only a day after Satyam Computer chairman B Ramalinga Raju’s admission that he had manipulated the company accounts, the government today ordered for an inspection into eight of its subsidiaries and asked ICAI to vet the internal audit documents of the IT major.

“We have ordered an inspection into eight subsidiaries of Satyam under Section 209 (A) of the Companies Act. We have also asked the Financial Reporting Review Board of ICAI to obtain internal working documents and audit and submit it within three days,” corporate affairs minister Prem Chand Gupta told reporters here.

The subsidiaries, whose accounts would be verified, are Maytas Properties, Maytas Infrastructure, Satyam BPO, Nipuna Services, Knowledge Dynamics, Nitor Global Solutions, CA Satyam ASP and Satyam Venture Engineering Services.

The ministry, Gupta said, was exploring different options with regard to actions that could be taken against the erring company, directors, auditors and other officials. “The government is keeping all options open. We are in close interaction with all other regulators and authorities to take coordinated action,” said Gupta, who earlier met officials from ministries of finance, law, and IT, ICAI and Sebi representative. FRRB, an entity under ICAI, has been asked to submit report in three days to the institute.

When asked whether the government would appoint directors on the board of Satyam, Gupta said, “I cannot comment on that now, but yes, there is a provision in the Act, which allows the government to do so.” On the possibility of a takeover of the Satyam board by the government, Gupta declined to comment. He indicated that the government would relook at some of the provisions of the new Companies Bill 2008 to prevent large-scale Satyam-like frauds. The new legislation, currently pending in Parliament, will replace the Companies Act, 1956.