Satyam probe: Institute of Chartered Accountants of India hauls up two more

Accounting regulator ICAI or the Institute of Chartered Accountants of India has found ex-Satyam CFO Vadlamani Srinivas and Price Waterhouse partner Srinivas Talluri ‘guilty of professional misconduct’ for their alleged involvement in the Rs 14000 crore Satyam scam, two individuals familiar with the development told ET NOW. After conducting detailed hearings, a disciplinary committee of the regulator arrived at the decision on January 3rd and finalized its report, which has been sent to the concerned parties. “We found negligence in duties and inadequate due diligence by Srinivas Talluri and Vadlamani Srinivas while they conducted their duties at Satyam Computers. The ICAI’s code of conduct was also not followed,” said one of the two individuals ET Now spoke with.

When contacted, G Ramaswamy, President, ICAI confirmed the development and said, “Further action will be taken by us on the basis of this report. We will give an opportunity to both the individuals before deciding on any possible punishment or penalty.”

The accounting regulator has been investigating the Satyam case since January 2009 and has set up a 6-member special committee to look into the fraud. In December 2011, it barred two Lovelock & Lewes auditors from practice for life and imposed a penalty of Rs 5 lakh each for their alleged role in the Satyam scam.