Satyam restrained from operating its accounts

 The Income-Tax department and Mahindra Satyam were restrained by the A.P. High Court till March 31from operating the accounts that the company has in various banks.

 

A Division Bench on Friday made the interim order in a writ petition filed by Mahindra Satyam challenging the action of the Central Board of Direct Taxes in refusing to stay a demand for tax to the tune of Rs.616 crore.

 

The petitioner complained that the attached accounts were about Rs.1,300 crore, well above the demanded amount. The company said this demand was raised by the authorities on the basis of fictitious and non-existent income shown by the founder of erstwhile Satyam Computers B. Ramalinga Raju.

 

V.B.K. Raju, Vice President (Finance) of the company, was directed to give an undertaking that he would ensure the company will not touch the accounts till March 31.

The Hindu