Tech Mahindra on Friday moved the Supreme Court against the Andhra Pradesh High Court decision permitting a special court to continue with framing charges against the firm in a criminal case initiated by the Enforcement Directorate (ED) in the Satyam scam.
A bench headed by Justice TS Thakur posted the matter for hearing on Tuesday. Senior counsel Kapil Sibal is representing Tech Mahindra.
According to Tech Mahindra, this amounts to an abuse of process of law where a victim of a crime has been charged with the offence of money laundering under Section 3/4 of the Prevention of Money Laundering Act (PMLA) on the misconceived basis that it was “in possession” of proceeds of crime.
“It is the victim of an unprecedented fraud perpetrated by its former chairman B Ramalinga Raju and his associates,” it said.
It said there was neither any allegation nor material evidence to show the firm was ever aware of the commission of scheduled offence or the fact the monies in its possession were allegedly tainted.
According to the IT firm, to make out an offence of money laundering, the accused must have knowlegde of the proceeds of the crime.
“The ED in its complaint doesnot allege that Tech Mahindra had any knowlegde about the proceeds of the crime…Merely being in possession of proceeds of crime does not constitute an offence of money laundering,” the petition stated.