Relief for Mah Satyam: HC stays ED order attaching Rs 822 cr FDs

Representational Image. AFP

Vivek Reddy, counsel for Msat, said the court has admitted the writ petition filed by Satyam questioning the jurisdiction of the provisional attachment order.

The court observed that the company was revived by the Government and invoking money laundering proceedings against the same company would be counterproductive to the efforts undertaken by another government agency.

The ED had attached the accounts of SCSL, saying 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 ED had said 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.

MSat in its petition said that the attachment order is in violation of the orders of CLB which directed infusion of fresh capital to revive and rehabilitate the fraud-hit company.

The fixed deposits, which have been attached by the ED, are the result of the funds infusion made by the new promoter.

The attachment order defeats the process of the revival of the Company which was the objective of the CLB order and steps taken by the Government of India, Ministry of Corporate Affairs, the IT major said.

Reacting to the high court order, MSat said the interim judgement would give reassurance to its customers and stakeholders.

“The HC’s interim judgement vindicates our position and should give further re-assurance to all our customers and stakeholders regarding our ability to carry on business as usual,” ITS said in a statement.

PTI

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