Mahindra Satyam to challenge ED attachement order: Nayyar

Hyderabad, Oct 30 : IT Services Provider Mahindra Satyam today said it is going to challenge the move taken by the Enforcement Directorate (ED) with respect to attachment of its 354 properties worth Rs 250 crore, after the Rs 14,000-crore accounting fraud in Satyam computer came to light in January 2009.

The ED had also issued provisional attachment orders on October 18 with respect to fixed deposits worth Rs 822-crore held by the B Ramalinga Raju-owned Satyam Computers as per the third installment of properties attached. Informing this at a press conference here, its Chairman Vineet Nayyar and CEO C P Gurnani said 'we are working on it to challenge the ED order..We have not filed an appeal so far.' Mr Nayyar said the Mahindra Satyam never had access to the money.

"The money attached by the ED was spent already when we took the company,"he added. He said after the accounting fraud came to light, the Board members were appointed by the union government and added mahindra Satyam when started the operations had zero balance. Mr Gurnani said Rs 500 crore was borrowed to meet the working capital by the Centre and added the fraud was committed by Mr Ramalinga Raju and the money was spent then.

The courts would ultimately decide about the ED's action, the CEO said. Mr Gurnani said uncertanities were prevailing in Europe and a debate was being held on traditional outsourcing in the US. He said "we continue to focus well in both the markets and added the company's Board of Directors had approved Rs 500 crore towards infrastructure for construction of the company's projects in the country." The commencement of construction of its IT Development Centre was started at Nagpur and as part of Expansion Program, the Company will set up 1,000 seat capacity IT development centre with an initial investment of around Rs 80 crore.

The CEO said the Phase-1 of the camps would be operational within 15-18 months period and as per the Mater Plan for expanding operations in Nagpur in a phased manner. Mahindra Satyam also announced its expansion at Bhubaneswar to expand the exiting campus, Mr Gurnani said and added construction work is going on in chennai and additional facilities are being adding to its vizag unit.

Mr Gurnani said the company started signing some large deals in Singapore and was selected by large oil and gas major and large regulators. The deal flow was increased dramatically, he said and added the motor vehicle solution was launched in the US market. 'We have a mission for 2015 with more combined management teams looking fresh targets for ourselves,' he said.

- Agencies

Published On : Oct 30, 2012