The aftershocks of Satyam Computers former chairman Ramalinga Raju admitting to fudging accounts worth Rs 8,000 crore have now reached faraway Gujarat.
The state government has decided to cancel the memorandum of understanding (MoU) with the company, which was to be signed during the Vibrant Gujarat Global Investors Summit 2009 next week. The MoU was for setting up an IT SEZ in the state.
“We have been trying to reach the company. But nobody was at hand there to respond. We have no other option (but to cancel the proposed MoU),” said a senior bureaucrat.
The government is also considering to take back 26 acres given to Satyam to set up offshore development centre (ODC) in Gandhinagar.
“The land was given under the new land tenure, by which we don't allow its full possession. There is a provision in it that says we can take the allotted land back from the company,” said Raj Kumar, Gujarat’s science and technology secretary.
Another officer added, “After this episode, we are not willing to commit anything. We have the full authority under the new tenure law to take back allotted land anytime we want. Investors have to follow the terms and conditions.”
The company was to develop ODC at a cost of Rs 60 crore. This project was to generate employment for over 3,000 professionals in the state over a period of five years. Apart from providing customised IT solutions, the company was also planning a consulting and designing centre in the state capital.
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