All down hill: The shares of the company plunged nearly 80 per cent after chairman B R Raju resigned yesterday. pic/ap

Bangalore-based infotech union claims it had written to NASSCOM about fraudulent details at Satyam last year

If the claims of a Bangalore-based infotech employees' union are to be believed, the union had written to NASSCOM about the fraudulent dealings at Satyam in October last year.u00a0

UNITES, a union of IT and ITES employees, claims that had the government investigated the allegations levied by the World Bank, the discrepancies at Satyam would have surfaced earlier.

"We wrote to NASSCOM on October 16. We also wrote to Satyam, the Prime Minister and the IT minister," said Kartik Shekar, secretary, UNITES.

"NASSCOM said that it was Satyam's internal matter and, hence, they could not help us. Now, it has gone in denial mode saying they never got a letter from us."

Impartial probe

The union wanted an impartial probe, and sought the accountability of the banks and auditors.

"Let everyone know that only the name is Satyam and the rest is Asatyam," he said.

"Unfortunately, IT companies have become holy cows, because they significantly contribute to foreign exchange. Even the government seems to be acquiescing."

"We are shocked and dismayed at this news. The whole incident is deplorable and the government and regulators must investigate the matter. They should also make necessary changes to regulations, so that such incidents are not repeated," read an Infosys statement.

Infosys Director (HR) Mohandas Pai said the companies will have to win back the faith of the clients.

Angel Broking too sent out a statement saying that they had discontinued coverage of Satyam in a release titled 'Satyam: India's Enron'.

"Raju's resignation is merely a side-show in the new drama that has unfolded. Apart from the immediate impact, its likely to have medium-term repercussions and in terms of the global perception of Indian companies," it said.

All down hill: The shares of the company plunged nearly 80 per cent after chairman B R Raju resigned yesterday. pic/ap