Satyam to challenge ED’s Rs 822cr attachment order

Satyam to challenge ED’s Rs 822cr attachment order Satyam Computer Services has announced that it would challenge Enforcement Directorate's (ED's) attachment order that froze the Rs 822 crore in the company's accounts.

The attachment order by the ED had been issued as part of the enforcement agency's ongoing probe into the accounting scam by Satyam's the company's founder B Ramalinga Raju.

But, Satyam Chairman Vineet Nayyar argued that there were no funds left in the company by the previous management, and that the situation was so dire that when the government directors took over the company they had to instantly borrow Rs 450 crore to pay pending salaries to the workers.

Laying claim to the amount frozen by ED, Nayyar said, "The amount attached by ED is our money and we will contest the attachment."

Earlier, the Mahindras-led new management of the company had kept aside around Rs 1,230 crore in suspense account, while the family members of Raju had later argued that some entities of the family had lent around Rs 1,230 crore to the company, which was never returned.

After bailing out Satyam, the new management is now awaiting the approvals from the Andhra Pradesh High Court to merge the company with Tech Mahindra.

Meanwhile, Satyam has reported an increase of 23 per cent in revenue at Rs 1,938 crore for the quarter ended September 30. Net profit jumped 17 per cent to Rs 278 crore in the second quarter of current fiscal, from around 238 crore in the corresponding quarter of previous fiscal.

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