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Is Sai Infosytems heading for bankruptcy?

The Maharashtra government is planning to register an FIR against the firm

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DQW Bureau
New Update

Ahmedabad-based System Integrator (SI), Sai Infosystems seems to be heading for bankruptcy. The company has not been able to pay salaries to its employees for more 9 months in many cases.

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The DQ Week tried to contact Kirit Joshi, senior VP, SIS, failed as their mobile phone services are disconnected. The company's landline numbers too were not reachable.

It seems SIS forayed in to a financial turmoil after its bagged the CCTV surveillance project to be deployed in Mumbai. Also, it had bagged a project from department of post for digitization of several processes.

According to Times of India report, the Maharashtra government is planning to register an FIR against the firm which submitted a false financial instrument for the CCTV surveillance project. As per the report, SIS submitted a cheque of over Rs 2 crore as deposit for a bank guarantee following an agreement with the government. But the cheque bounced, prompting the government to contemplate action under section 138 of the Negotiable Instruments Act. If enforced, the firm will be blacklisted, forcing it out of future bidding for CCTV projects in other cities.

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Under the surveillance project, the government had called tenders for the project to install 6,000 camera across the city. SIS had placed the bid at Rs 700 crore, while the second bidder, AGC, had submitted a bid of over Rs 1,000 crore for the estimated Rs 864-crore CCTV cover plan for Mumbai.

While, DNA report states, Sunil Kakkad, MD, SIS which is worth Rs1,500-crore is believed to have been missing. The report further states SIS employees have not been paid salaries for the past nine months. The company is believed to be now in Rs. 1000 crore debt and there is a possibility that more than 1,000 employees might lose their jobs.

Also, when checked upon various consumer complaint related websites, there have been anonymous or under pseudo name, post by employees of SIS complaining about non-payment of salaries and taking legal guidance.

Many industry people are hopeful that things will turn around and work out for SIS. However, the other scenario will create a major turbulence in the IT fraternity as many other companies have been closely working with SIS and their money will be at stake. If there will be a fall, it will create a tumultuous situation from where heading back will be an herculean task for SIS.

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