CLB restrains former Satyam officials from selling personal assets
The court ordered them to furnish details about their bank accounts and movable and immovable property in India and abroad, by Feb 20. Satyam's ex board members
By ET Bureau |
NEW DELHI: To prevent the erstwhile top brass in Satyam from making gains by siphoning of public funds, the Company Law Board (CLB) on Wednesday restrained Satyam's founder B. Ramalinga Raju, his brother B. Rama Raju, former CEO Rammohan Rao Mynampati, CFO Srinivas Vadlamani and company secretary G J Jayaraman from selling or mortgaging their assets without the court's permission.
The court also ordered them to furnish details about their bank accounts and movable and immovable property in India and abroad, by February 20.
"With a view to ensure that the persons who were at the helm of affairs in Satyam are not allowed to profit or otherwise gain from any diversion or siphoning of funds from Satyam... ..they have been directed by the CLB that they shall not alienate, charge, mortgage or sell any of their shares, securities and fixed assets, without leave (permission) of the CLB...," said minister for corporate affairs Prem Chand Gupta.
The move is seen as a precursor to the attachment of the properties of these former company officials including some former board members. Mr Gupta said that the order in a way, is akin to attachment of properties as it restrains them from selling or mortgaging it.
Officials explained that the CLB order is phrased in such a way that it covers even properties owned by these people under any other person's name. "These people have to disclose as well as refrain from any transactions in all assets owned by them irrespective of under whose name they are registered", explained an official.
Mr Gupta also said that the government has not yet moved the CLB to replace the board of Maytas Infrastructure or Maytas properties promoted by disgraced Ramalinga Raju's family.
Both these companies are under the Serious Fraud Investigation Office's (SFIO) probe to unearth their nexus with the fraud in Satyam.
The court also ordered them to furnish details about their bank accounts and movable and immovable property in India and abroad, by February 20.
"With a view to ensure that the persons who were at the helm of affairs in Satyam are not allowed to profit or otherwise gain from any diversion or siphoning of funds from Satyam... ..they have been directed by the CLB that they shall not alienate, charge, mortgage or sell any of their shares, securities and fixed assets, without leave (permission) of the CLB...," said minister for corporate affairs Prem Chand Gupta.
The move is seen as a precursor to the attachment of the properties of these former company officials including some former board members. Mr Gupta said that the order in a way, is akin to attachment of properties as it restrains them from selling or mortgaging it.
Officials explained that the CLB order is phrased in such a way that it covers even properties owned by these people under any other person's name. "These people have to disclose as well as refrain from any transactions in all assets owned by them irrespective of under whose name they are registered", explained an official.
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Mr Gupta also said that the government has not yet moved the CLB to replace the board of Maytas Infrastructure or Maytas properties promoted by disgraced Ramalinga Raju's family.
Both these companies are under the Serious Fraud Investigation Office's (SFIO) probe to unearth their nexus with the fraud in Satyam.
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