Ernst and Young (E&Y) did the valuation of Maytas Properties and a Delhi law firm Luthra and Luthra the title diligence of the real estate company’s assets, records of the controversial Board meeting at which Satyam Computer Services was allowed to buy two firms linked to its disgraced promoter B Ramalinga Raju show.

E&Y, which is also the internal auditor for Satyam, has all along denied doing any work for Satyam related to the failed acquisitions and its representative has said it had “no connection of any kind with the transaction”.

The Satyam board, at its meeting on December 16, approved buying 100% of privately-held Maytas Properties for up to Rs 6,410 crore and Maytas Infra, a listed infrastructure company, for about Rs 1,500 crore.

The minutes of the meeting show that V Srinivas, the CFO of Satyam, informed the board that E&Y valued Maytas Properties at Rs 6,523 crore.

Satyam’s statutory auditor PricewaterhouseCoopers is already under pressure to explain its role after Mr Raju confessed on Wednesday to falsifying accounts to the tune of Rs 7,000 crore. The key members of PwC’s audit team with Satyam included S Gopalakrishnan, Srinivas Talluri, Ravindranath and R Srinivasa Sankar.

The attempt to buy the two Maytas companies has been described by Mr Raju in his confession as a bid to cover up the absence of cash in Satyam’s books with what he called “real assets” from the companies run by his sons.

Mr Raju has claimed that he “inflated” Satyam’s cash reserves by over Rs 5,000 crore but many believe that this may not be true and that the money may have been diverted from the software company to buy land and real estate.

While questions are being raised about the role of PwC, an erstwhile independent director said the board had relied on the audited accounts while approving the acquisition.

The auditors need to be severly taken to task for passing of faked and cooked up books of Satyam. What is the need for auditors if they can not see through a scam of 7000 crores.

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