Examine ED charge against Tech Mahindra: HC to trial court

Hyderabad: A two judge bench of the High Court at Hyderabad on Wednesday admitted a writ appeal filed by the Enforcement Directorate on the question as to whether Tech Mahindra, inheritor of the Satyam legacy, can be proceeded against under the Prevention of Money Laundering Act. The bench comprising Chief Justice Kalyan Jyothi Sengupta and Justice P V Sanjay Kumar directed Tech Mahindra Ltd., to appear before the Enforcement Directorate and participate in proceedings under the Act.

The bench was dealing with a writ appeal filed by the ED questioning the order of a single judge quashing proceedings against the company initiated by the ED. The ED had issued notices to the company in connection with the Satyam scam. Tech Mahindra then approached the High Court questioning the action and validity of the ED stating that at the time of the scam, the company did not exist.

A single judge had quashed an order of the XXI Additional Chief Metropolitan Magistrate-cum-Special Sessions Court, Hyderabad, taking cognizance of the complaint with reference to multi crore accounting fraud of Satyam. T Niranjan Reddy, counsel for the ED, said that Section 70 of the PMLA Act mandated that the Company should be made as an accused for the alleged offences under the Act.

While directing the Tech Mahindra to participate in the process of framing of charges, the bench asked the trial court to examine whether sufficient material was available against the company to frame charges and made it clear that the trial court can take a decision without any reference to or being influenced by the order of the single judge.