Andhra HC stays Enforcement Directorate order in Satyam case

The court also stays a notice issued by the adjudicating authority to Mahindra Satyam

The Andhra Pradesh High Court today stayed a provisional order of the Enforcement Directorate (ED), attaching Rs 822 crore of Mahindra Satyam’s funds lying with various banks in Hyderabad.

The ED, had on October 18, 2012, issued a provisional attachment order of Mahindra Satyam's (erstwhile Satyam Computer Services) Rs 822-crore fixed deposits in a money laundering case involving its former chairman B Ramalinga Raju and others.

The high court today also stayed a notice issued by the adjudicating authority to Mahindra Satyam, asking the company officials to appear before it with regard to the case.

It may be recalled that Mahindra Satyam approached the Andhra Pradesh High Court earlier this month, urging it to quash ED’s provisional attachment order.

 

In its petition, the company had maintained that it revived the scam-hit IT consulting and services company and brought in strategic investors like Venturbay Consultants, a subsidiary controlled by Tech Mahindra, to infuse Rs 2,900 crore into it after they took over.