Satyam moves CLB for nod to pay directors

Mahindra Satyam (earlier Satyam Computer) today moved the Company Law Board (CLB) seeking its nod for payment to six directors nominated by the government on its board after the accounting fraud at the IT firm.

Mahindra Satyam has requested the CLB to give go-ahead to it for payment to the directors for the financial years 2009-10 and 2010-11.

Admitting the plea of the IT firm, CLB Chairman Justice DR Deshmukh asked the government to file an affidavit over the plea of the Satyam.

CLB further asked the Ministry of Corporate Affairs to file their reply by October 10, the next date of hearing.

That day, the CLB will hear another matter filed by G Jayaraman, the company secretary of Satyam Computer. He has moved an application for the vacation of an interim stay, so as to enable him to dispose of his personal assets.

Earlier, CLB had frozen the assets of Jayaraman following the multi-crore accounting fraud at Satyam, until the investigations were over.

Senior advocate Vibhu Bakhru, appearing for Jayaraman, contended that now the investigations by SFIO and CBI have been completed and he should be allowed to dispose of his assets, including a flat.

Bakhru submitted that Jayaraman was a victim of the fraud as nothing has been found against him and, moreover, he has become a witness of the CBI in the trail against the disgraced founding chairman of Satyam Computer B Ramalinga Raju and his associates.

In January 2009, Raju admitted to fudging the accounts of Satyam that unfolded the country's biggest corporate fraud. The was later taken over by Tech Mahindra and renamed as Mahindra Satyam.