Relief for Tech Mahindra from Satyam ED case

HYDERABAD: Justice P Naveen Rao of Hyderabad High Court on Monday quashed the case filed by the Enforcement Directorate (ED) against Tech Mahindra (TechM) in the Satyam scam case. Tech M was formerly known as Satyam Computers. The ED, which investigated the case under the Prevention of Money Laundering Act (PMLA), made the company an accused on the grounds that it was liable for prosecution and also because the case would become weak without it being among the accused.However, Tech Mahindra argued that Satyam had collapsed due to the fraud and that it was the successor company that had re-built it.
The ED in its chargesheet identified Satyam’s founder B Ramalinga Raju as an ‘accused’, along with another 200 others, one among them being Tech M. The counsel for Tech M argued that it was unfair for the probe agency to show them as accused, and that it was affecting their market overseas.
While allowing the plea, Justice P Naveen Rao held that Tech Mahindra could not be held responsible for the offences committed by the old management of the company under Section 467 of IPC, which deals with forgery of valuable security, will, and other documents. Saying so, the judge quashed the case against Tech Mahindra. However, the case against the other accused including Ramalinga Raju would continue.