ICAI's probe panel has hit out at bank for not doing due diligence on Satyam Computer Services before giving loans, and government for appointing Deepak Parkeh on its board despite his HDFC group being a major creditor to Ramalinga Raju's company.
The banks which gave loan to Satyam that time were HDFC Bank (Rs.530 crore), Citibank (Rs.223.87 crore) Citicorp Finance (Rs.222.28 crore), ICICI Bank (Rs.40 crore) and BNP Paribas (Rs.20 crore), totaling Rs.1221.16 crore.
In its final report, ICAI panel headed by Former President Uttam Prakash Agarwal stated, "There is no explanation as to why the banks, while sanctioning short-term loans did not seem to have posed any question as to why the company (Satyam) which was supposedly cash rich as per its financial statement was taking loans from them."
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