ED freezes Satyam FDs worth Rs 822 crore

Posted By:

ED freezes Satyam FDs worth Rs 822 crore
The Enforcement Directorate (ED) on Thursday froze fixed deposits (FDs) worth Rs 822 crore of Satyam Computers which were held in different banks.

N Sridhar, joint director of the Hyderabad zone of ED, told TOI that the current attachment is a provisional one and that they will now be filing a complaint before the adjudicating authority constituted under the PMLA for confirmation of the same. On confirmation, the money will be confiscated.

The Enforcement Directorate, investigate offence of money laundering under the provisions of Prevention of Money Laundering Act, 2002(PMLA) which came into force with effect from 1.7.2005.

The company in a filing said that "it has been served with a provisional attachment order dated October 18, 2012 issued by the Joint Director, Directorate of Enforcement, Hyderabad under Section 5(1) of the Prevention of Money Laundering Act, 2002, attaching the Fixed Deposit accounts of the Company for an amount of Rs. 822 Crores for a period of 150 days".

This attachment has been initiated consequent to the charge sheets filed by the Central Bureau of Investigation (CBI) against the erstwhile promoters of the Company and others and investigation conducted by Directorate of Enforcement under Prevention of Money Laundering Act. The Company is examining the implications of this order & will respond appropriately.

Shares of the Mahindra Satyam was seen trading lower by 1.56% at Rs 107 on BSE at 9.45 am IST. It touched intra-day low of Rs 104.80.

Read more about: satyam
Story first published: Friday, October 19, 2012, 9:47 [IST]
Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

Thousands of Goodreturn readers receive our evening newsletter.
Have you subscribed?