AP HC stays ED order attaching Rs 822-crore deposits of MSat

Written by fe Bureau | Hyderabad | Updated: Dec 12 2012, 08:18am hrs
The Andhra Pradesh High Court has stayed a provisional order of the Joint Director, Directorate of Enforcement, Hyderabad, attaching deposits to the tune of R822 crore belonging to Mahindra Satyam in an alleged money laundering case involving B Ramalinga Raju, the founder of erstwhile Satyam Computer Sevices.

Justice PV Sanjay Kumar also stayed the notice issued by the adjudicating authority to Mahindra Satyam asking the company officials to appear before it with regard to the case.

The attachment was carried out under the Prevention of Money Laundering Act (PMLA). Vineet Nayyar, chairman, Mahindra Satyam, had earlier stated that the company was going to challenge the EDs order as the deposits rightfully belonged to the company. Nayyar had said that the new management never had access to the money brought in by Raju and that the amount had already been spent by the time Tech Mahindra took over the company.

Mahindra Satyam has set asideR1,230.40 crore under amounts pending investigation suspense account in its balance sheet for various cases.