SATYAM SALE CHALLENGED IN APEX COURT

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THE ORDER of the Company Law Board authorising fraud-hit Satyam Computer Services (now Mahindra Satyam) to induct strategic investor(s) and raise authorised capital has been challenged in the Supreme Court.

   Advocate ML Sharma, a shareholder in the fraud-hit Satyam has moved a special leave petition in the apex court challenging the order of the CLB passed on February 19. In his petition Mr Sharma said, “No shareholder meeting has been called upon till date for any kind of reference and approvals. It is a clear fraud which must be stopped with immediate stay direction.”

   The petition said that the company having Rs 1,800 crore receivable in hand and fixed assets of Rs 2,038 crore with no creditors and Rs 6,000 crore annual service fees foreign currency return has been sold out in the hand of a third party almost free of cost. The declaration of the sale value of Rs 1,700 crore is an eye wash as the entire money of share issued on preference basis will be in the company’s bank account and the same will go back to the third party along with the company, said the petition.

   The Company Law Board had authorised the board of directors of the Satyam Computer Services, a leading global consulting and information technology providers to increase its authorised equity to make a preferential allotment of the shares and to induct strategic investor(s). Petitioner has moved to the apex court after an order by Delhi High Court order. The high court had dismissed his plea on the ground of jurisdictional issue.

   “This appeal is, therefore, dismissed on the ground of want of territorial jurisdiction of this court”, the high court had said. It had noted that the fraud hit company was based in Hyderabad.

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