Hyderabad HC sets aside ED order attaching Rs 822 crore fixed deposits of Tech Mahindra

The Enforcement Directorate in 2012 provisionally attached the fixed deposits under Section 5 (1) of the PMLA 2002, before Tech Mahindra formally took over scam-hit Satya Computers.

Published: 31st December 2018 04:29 PM  |   Last Updated: 31st December 2018 04:29 PM   |  A+A-

Tech Mahindra | Reuters


HYDERABAD: The Hyderabad High Court Monday set aside an Enforcement Directorate order provisionally attaching fixed deposits worth Rs 822 crore belonging to Tech Mahindra.

The Enforcement Directorate in 2012 provisionally attached the fixed deposits under Section 5 (1) of the Prevention of Money Laundering Act (PMLA) 2002, before Tech Mahindra formally took over scam-hit Satyam Computers.

The ED attached the amount alleging that it was ill-gotten proceeds of Satyam Computers.

A bench comprising Justices V Ramasubramanian and J Uma Devi set aside the ED's order.

Counsel for Tech Mahindra Vivek Reddy told PTI that they argued that there was no money with the fraud-hit Satyam Computer Services Ltd in 2009, when it was taken over and the Mahindra group company infused the amount to revive the Ramalinga Raju-founded company.

On January 7, 2009, Raju in his capacity as chairman had sent an email to SEBI, wherein he admitted and confessed to inflating the books of Satyam besides understating liabilities and other financial misstatements.

After the fraud came to light, the government ordered auction of the company to protect investors and employees of the then fourth-largest IT firm.

Satyam was acquired by Tech Mahindra, and then was renamed Mahindra Satyam and was eventually merged with Tech Mahindra.

Stay up to date on all the latest Nation news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp