High court dismisses plea to stay sale of new Satyam shares

Thursday, March 12, 2009

NEW DELHI - The Delhi High Court Thursday dismissed a plea seeking a stay on selling new shares of the fraud-hit Satyam Computer Services Ltd.

A division bench headed by Chief Justice Ajit Prakash Shah and Justice Sanjeev Khanna, dismissing the plea, said it was not a public interest litigation matter and should be dealt with separately.

The software firm has been mired in a controversy for the Rs.78 billion (Rs.7,800 crore) accounting fraud its founder B. Ramalinga Raju publicly admitted.

Advocate Manohar Lal Sharma filed a public interest petition seeking stay on the selling of Satyam shares, stating that since the company has not paid back its earlier shareholders, selling of new shares is not fair.

The Central Bureau of Investigation (CBI) is probing the scam and has interrogated B. Ramalinga Raju, his brother and former managing director B. Rama Raju, former chief financial officer Vadlamani Srinivas and sacked Pricewaterhouse partners S. Gopalakrishnan and Talluri Srinivas.

Ramalinga Raju Jan 7 confessed that he had cooked the company’s account books and inflated profits over the past several years.

Filed under: India, Satyam

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