SC upholds HC order setting aside ED move to attach Satyam’s FDs worth Rs 822 cr

By: |
February 27, 2021 3:15 AM

The Supreme Court had earlier in December 2017 rejected the ED's appeal seeking to make Tech Mahindra liable for the alleged money laundering of over Rs 820 crore by erstwhile Satyam Computer Services.

However, the top court left open the larger issue whether PMLA can overide other laws like IBC, etc.However, the top court left open the larger issue whether PMLA can overide other laws like IBC, etc.

In a relief to Tech Mahindra, the Supreme Court on Friday upheld the Hyderabad High Court’s order that set aside an Enforcement Directorate’s decision to provisionally attach the IT company’s fixed deposits worth Rs 822 crore.

A bench, led by justice RF Nariman, dismissed the ED’s appeal after solicitor general Tushar Mehta informed it that the agency no longer wanted to pursue the case.

However, the top court left open the larger issue whether PMLA can overide other laws like IBC, etc.

The Supreme Court had earlier in December 2017 rejected the ED’s appeal seeking to make Tech Mahindra liable for the alleged money laundering of over Rs 820 crore by erstwhile Satyam Computer Services.

The top court had upheld the High Court’s 2014 judgment that ruled that Tech Mahindra cannot be fastened with criminal liability of Satyam.

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

This was done on the ground that it was ill-gotten proceeds of the B Ramalinga Raju-founded Satyam Computers.

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