Mah Satyam, Tech Mahindra merger may be delayed

After about two years of trial in additional Chief Metropolitan Magistrate's court in Hyderabad, the enforcement directorate has raised serious objection to the current trial process.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney SME Special
moneycontrol.com

Home » News » Business

Feb 15, 2011, 09.03 AM | Source: CNBC-TV18

Mah Satyam, Tech Mahindra merger may be delayed

After about two years of trial in additional Chief Metropolitan Magistrate's court in Hyderabad, the enforcement directorate has raised serious objection to the current trial process.

Like this story, share it with millions of investors on M3

Mah Satyam, Tech Mahindra merger may be delayed

After about two years of trial in additional Chief Metropolitan Magistrate's court in Hyderabad, the enforcement directorate has raised serious objection to the current trial process.

Post Your Comments

Share Cancel

Mah Satyam, Tech Mahindra merger may be delayed
Mahindra Satyam 's proposed merger with Tech Mahindra may be delayed all because of legal issues, and ambiguity over jurisdiction between investigating agencies and the government, reports CNBC-TV18ís Appaji Reddem and Arvind Sukumar.

Tech Mahindra had hoped that a year from now, the merger between Mahindra Satyam and Tech Mahindra would be a done deal. But this is not to be. For one, the merger requires approval from investigating agencies like CBI, SFIO and enforcement directorate and they want to wait till their investigation is complete.

CP Gurnani, CEO, Mahindra Satyam said "For any merger process to be initiated where there has been some history like this, we need to get some tacit approval or atleast symbolic go ahead from some of the agencies and currently the agencies that are investigating this, they've put us on hold."

For another, the enforcement directorate has raised objections on the current Satyam trial process at the assistant chief metropolitan magistrate court, saying the court does not have jurisdiction. It has also challenged the charge sheets filed by the CBI. The Finance Ministry has sought legal opinion on this move from the advocate general but the CBI has maintained that the additional Chief Metropolitan Magistrate court has jurisdiction.

K Surender, Senior Counsel for CBI said, "As far as the cases are concerned, the CBI has filed before Additional Chief Metropoliton Magistrate Court who has jurisdiction to try the IPC offences. As far as the SFIO and other agency ED are concerned, they've filed their reports before the Economic Offences Court where jurisdiction lies."

While the confusion over jurisdiction continues, the CBI is understood to be ready to meet Supreme Court's July 31 deadline to complete the Satyam trial. Meanwhile, legal experts say that any traces of a wrong trial may mean that the CBI has to restart the entire process, in another court. If that happens, a merger may not appear even on the distant horizon.

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Mah Satyam, Tech Mahindra merger may be delayed

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login