Reality Check India

Tax payers money for Satyam bailout

Posted in Uncategorized by realitycheck on January 12, 2009

We already said the IT tax holiday is the original sin and the driving force behind the SEZ scams big and small. So, what is left to say.

The tax payers must stay alert :

Speaking on the sidelines of the meeting, board member Parekh said Satyam’s working capital requirements needed immediate attention and that he expects the government to provide temporary liquidity to Satyam to overcome the crisis. The amount of liquidity required has not yet been determined, he added.

Source : Domain B

So, a company that has contributed little or no tax money to the nation now wants our tax money to tide over its crimes. How ironic ?

I do not doubt the integrity of the new directors. This is just a dangerous job they are undertaking.

More observations

  • There were many talking heads on TV tonight saying the “Satyam brand cannot be allowed to sink”. Dear Sirs, the brand is finito. You better give this company a new name.
  • Saving the employees is not the same as saving the company. You can split up the company and sell the parts by bidding. This is the correct capitalistic way. Let Infy and others bid for the pieces including the employees. You can structure the auction that way.
  • Poor tax payers are going to be exposed to the various cases in which Satyam is implicated and might very well lose. Do we want the Indian school teachers salary going to settle Satyam’s dues with UPaid  or the recent slew of class action lawsuits ?
  • CPI MP Mr D Raja suggested the government should simply confiscate and liquidate some land belonging to the Raju family / Maytas and use the proceeds to meet operating expenses (which are low in a software services company) I am not saying I endorse this, but it sounded appealing.

I must say the new directors are brave people. Good luck.

The government will be all too eager to screw the tax payer You see taxes (along with terrorism, inflation, and mosquitoes) are big ticket issues which mean zilch in Indian elections.


6 Responses

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  1. Gaurav said, on January 13, 2009 at 7:02 am

    I am not saying I endorse this, but it sounded appealing.

    Au contraire it sounds positively terrifying. Once govt starts confiscating for any reason it wont stop. And before we know we are back to halcyon days of socialism. Such is the nature of power the way it is exercised in Bharat. As someone might (or might not) have said worst form of tyranny is in name of public good.

    PS. Thanks for putting me on blog roll. I assume I finally passed your strict criteria 🙂

  2. rc said, on January 13, 2009 at 8:45 am

    >> PS. Thanks for putting me on blog roll.

    Believe me, I wanted add your blog for a long time.

    >> Au contraire it sounds positively terrifying.

    As we hurtle downhill, is there a point past which such a confiscation might appeal to some ?

  3. reason said, on January 13, 2009 at 9:38 am

    is comic relief exempted from contempt provisions? i hope so.

    “Rejecting the submission, the judges said Venu, who had migrated from Kerala, should make way for the disadvantaged and disabled communities in Tamil Nadu.”

    That would be, for example, the Gounders of Tiruppur who either own acres of land or export units or both or more.

  4. realitycheck said, on January 13, 2009 at 12:13 pm

    Now we need to define who a ‘migrant’ is. Why because there is a legal status attached to the term. Mr Venu migrated from Kerala, not his son. If his son in born in TN and his community is ST in TN then he must be issued a ST certificate.

    Otherwise, the migrant concept could stretch to more than 1 generation. Are the telugu speaking people in TN (> 40% of TN pop) migrants ? Of course not, because their forefathers came as conquerers and made TN their home.

  5. amreekandesi said, on January 23, 2009 at 5:12 pm

    Agree that a company that engages in malpractices of such scale must be brought to book.

    But at the same time, the consequences of those 53,000 people losing their jobs scares me. Not just for those poor families, but for the impact it would have on the Indian IT industry.

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