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The Andhra Pradesh High Court on Friday restricted Mahindra Satyam and the Department of Income Tax from accessing several bank accounts of Mahindra Satyam till March 31.
A Division Bench passed an interim order to this effect, while in a writ petition filed by Mahindra Satyam challenging the Central Board of Direct Taxes's (CBDT) directive to pay Rs 616 crore in tax arrears.
The tax arrears pertained to the questionable period of 2002-2008 when its former Chairman, Mr B. Ramalinga Raju, fudged financial numbers and which led the then Satyam Computer Services Ltd into a deep crisis.
The Bench further directed the Hyderabad-based company to give an undertaking stating that it would not touch the accounts till March 31. The case was posted to March 30 for further hearing.
In view of the restriction, Mahindra Satyam might not be able to access about Rs 1300 crore in various banks, including ICICI Bank, HSBC, Bank of Baroda and Yes Bank.
When contacted, a Mahindra Satyam spokesperson said the AP High Court had adjourned the case to Wednesday.
“While the amount sought to be recovered is about Rs 616 crore, the balances in our bank accounts are far in excess. All these will not impair our ability to run the day-to-day operations, in any way,'' he said.
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