ED freezes FD worth Rs.822 crore of erstwhile Satyam Computers

The company SCSL, whose FDs have been attached, was taken over by Tech Mahindra in 2009 in the aftermath of the scam and the ED has taken the action in order to proceed with the prosecution process against B Ramalinga Raju and his family members over alleged financial misdealings.

Raju was the Chairman of SCSL before the scam came to light.

The ED attached the accounts of SCSL as its probe found that Raju and his associates "wrongfully" offloaded inflated shares of the said company by way of sale or pledging of shares, the orders said.

According to it, Raju and his family members allegedly "lured" investors into buying these shares by publishing "false" information about the financial credentials of the scam-hit company.

"Trail of loans derived from front companies revealed that Rs 822 crores out of Rs 2171.45 crore found their way to Ms SCSL and were used for day-to-day expenses like payment of salaries among others.

"Since this amount subsists with Ms SCSL and constitutes a part of the loans that were derived or obtained by pledge of inflated shares of Ms SCSL, which is, Rs 2171.45 crores they fall within the mischief of proceeds of crime under the PMLA and are liable for attachment," the order said.

When contacted, an official spokesperson of Mahindra Satyam refused to comment saying that the senior management is still 'assessing' the situation. (MORE)