Mahindra Satyam gets notice on money laundering

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Mahindra Satyam gets notice on money laundering
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Satyam Computer Services Ltd, which has been rebranded Mahindra Satyam, has been served a notice in connection with a money laundering case involving its previous management.

The Enforcement Directorate (ED) on 18 October issued a provisional attachment order of the company's fixed deposits (FDs) worth Rs.822 crore in the case.

Based on a complaint filed by the ED, the adjudicating authority under the Prevention of Money Laundering Act issued the notice asking Satyam to provide evidence and information related to the FDs.

"You are directed to appear before the Adjudicating Authority, Prevention of Money Laundering Act in person or through advocate/ authorized representative, duly instructed on December 10, 2012, at 11.00am, failing which the complaint shall be heard and decided in your absence," the authority said in the notice.

A Mahindra Satyam spokesperson declined to comment.

Chairman Vineet Nayyar had earlier said the company would challenge the ED's order as the deposits rightfully belonged to the company.

"We are going to challenge it because we never had access to that money. That money (which former Satyam chairman B. Ramalinga Raju claims to have brought in) had already been spent when we took over," Nayyar had said at a press conference after announcing quarterly results last month.

"In fact, the situation was so bad that when the government directors were appointed, they had to borrow Rs.450 crore to pay salaries in the US," he said.


Read more about: satyam, mahindra satyam
Story first published: Wednesday, November 21, 2012, 15:27 [IST]
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