The bank accounts of Mahindra Satyam have reportedly been frozen by the Income-Tax Department on Tuesday, following the raise of demand for tax arrears to the tune of Rs 616 crore on the crisis-stricken IT services company.

Sources in the Department have neither confirmed nor denied the reports. “We can only say that it is quite common for the Department to do that in some cases. It is a routine process. When we raise a demand on a firm or a person and amount in question is huge, chances are we might approach relevant banks to freeze such accounts,” they said.

When contacted, Mahindra Satyam, however, has denied such action. “We have not received any intimation in this regard,” a top company executive said.

comment COMMENT NOW