“The takeover by Tech Mahindra, a much smaller company, did not come about without its share of anxieties. But this is a classic case of a public-private partnership that worked well. Not just in India, but anywhere in the world. The proactive role played by the government was really amazing,” says Karnik, who like others on the board, including Deepak Parekh and Tarun Das, are working pro bono on this project.

GETTING IT RIGHT

‘Satyam is India’s Enron’, screamed newspapers and television channels when on January 7, Raju said he cooked the company’s accounts more than three months ago. Investor confidence was shattered. Satyam’s share price tanked from Rs 179 to near Rs 10 the very next day and the company appeared to be collapsing.

But the government stepped in swiftly and took control. Prime Minister Manmohan Singh got personally involved at the very start by publicly stating that Satyam was too big to fail and that its rescue must not get embroiled in inquiries being undertaken by agencies such as the Serious Frauds Investigation Office, the state police and the Securities and Exchange Board of India (SEBI).

Cabinet Secretary K.M. Chandrasekhar kept him informed of the progress through the three months. The Ministry of Corporate Affairs was designated as the nodal agency for stabilising the company’s operations. The Ministry wanted the new board to set things in order and stay on, if not forever, for at least for the next six-12 months. The six-member board, however, had different ideas—of evolving a permanent solution that was only possible with a new owner.

... contd.