The Andhra Pradesh High Court on Tuesday stayed a provisional order of
Enforcement Directorate attaching Rs 822 crore deposits belonging to
Mahindra Satyam in an alleged money laundering case involving former Satyam Chairman B.Ramalinga Raju and others.
Justice P.V. Sanjay Kumar also stayed the notice issued by the adjudicating authority to Mahindra Satyam (earlier Satyam Computer Services Ltd), asking company officials to appear before it with regard to the case.
The ED had on October 18 issued a provisional attachment order of the company's fixed deposits of Rs 822 crore in the case related to the previous management.
The Adjudicating Authority under Prevention of Money Laundering Act (PMLA) has also issued notices to Satyam Computer Services Limited to appear before it in connection with the case.
Vivek Reddy, counsel for Mahindra Satyam, 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.
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