Satyam buyout: SC bars criminal proceedings against Tech Mahindra

Asks Andhra Pradesh high court to decide on issues within four months

The Supreme Court on Monday restrained a court in Andhra Pradesh from framing criminal charges against Tech Mahindra, which had taken over the scam-hit Satyam Computer Services Ltd. The apex court asked the Andhra high court to decide on the issue in four months. Till then, no action shall be taken against Tech Mahindra, said the Supreme Court.

Counsel for Tech Mahindra, Kapil Sibal, denied any link with Satyam Computer’s founder B Ramalinga Raju and family. Raju allegedly inflated shares by financial operations.

Additional solicitor-general Maninder Singh told a bench headed by judge T S Thakur that the merger of Tech Mahindra and Satyam took place by taking over all liabilities and prosecutions of the latter. The high court had rightly ruled that the company should be impleaded in the criminal case, he said.

Sibal argued that Tech Mahindra had bought the tainted Satyam for Rs 2,890 crore. “This money has no connection with the Rs 800 crore caught in offences under the Prevention of Money Laundering (PML) Act,” he said. On Raju, he said, “I don’t know him.”

Singh has argued that under the Companies Act, the PML Act and the Negotiable Instruments Act, Tech Mahindra has to be made a party, as Satyam has become Tech Mahindra. The crime proceeds of Raju are with Tech Mahindra, he argued.