Supreme Court grants relief to Tech Mahindra in ED case

NEW DELHI: In a breather to Tech Mahindra, the Supreme Court today restrained for four months a trial court in Andhra Pradesh from framing charges against the IT services company in connection with Enforcement Directorate's proceedings in the Satyam accounting fraud case.

The case pertains to ED's attachment of fixed deposit worth Rs 822 crore belonging to the company and cases have been registered for alleged money laundering and foreign exchange violation.

A bench comprising Justices TS Thakur and R Banumathi asked the High Court at Hyderabad to expeditiously deal with the matter and dispose it of within the stipulated period.

Additional Solicitor General Maninder Singh, who was asked to assist the court in the matter, said since framing of charges could lead to international debarring of Tech Mahindra, the high court could be asked to consider the case expeditiously.

He submitted that Rs 822 crore of Satyam's money was still with the company as "crime proceeds", which prompted the ED to proceed against it.

Senior advocate Kapil Sibal, appearing for Tech Mahindra, denied any connection with Satyam Computers' B Ramalinga Raju and family which allegedly inflated shares by various financial operations.

However, Singh said the amalgamation took place by taking over all liabilities and prosecutions.

The high court had rightly ruled that the company should be impleaded in the criminal case, the ASG contended.

Sibal said Tech Mahindra bought the scam-tainted company for about Rs 2,890 crore and there was no connection with around Rs 800 crore which is the subject matter of offences under the Prevention of Money Laundering Act.

Tech Mahindra has appealed against a two-judge bench order of the high court which had allowed a special court hearing criminal cases arising out of the Satyam scam to frame charges against Tech Mahindra.