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| SC to hear plea on compensation for retail Satyam investors |
| Press Trust of India / New Delhi Aug 06, 2009, 17:39 IST |
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The Supreme Court will hear on Monday a plea by Midas Touch Investor Associations seeking compensation of nearly Rs 5,000 crore for three lakh retail shareholders in fraud-hit Satyam Computer Services.
Kanpur-based consumer protection organisation Midas Touch had earlier moved the consumer court in this regard. However, the National Consumer Disputes Redressal Commission (NCDRC) had expressed its inability to take up the plea.
"We are of the view that the issues in complaint cannot be examined in summary jurisdiction under Consumer Protection Act, 1986 by this Commission. Accordingly the complaint is dismissed," NCDRC had held.
The plea before NCDRS sought a compensation of Rs 4,987.5 crore for three lakh retail shareholders of Satyam.
Shares of Satyam had plunged by 78 per cent to the level of Rs 39 a share from Rs 179-level after the IT company's founder B Ramalinga Raju revelead the multi-crore rupee accounting fraud in January this year.
The CBI had already filed a chargesheet against nine persons, including Raju, who had admitted to cooking company's account books, and his brother B Rama Raju and former CFO Vadlamani Srinivas.
Satyam Computer has since been taken over Tech Mahindra, which paid Rs 1,756 crore for 31 per cent through an open auction. It bought another over 10 per cent in Satyam through preferential allotment at the rate of Rs 58 a share.
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