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.
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.
Mahindra Satyam stock price
On July 03, -, Mahindra Satyam closed at Rs 115.30, up Rs 0.00, or 0.00 percent. The 52-week high of the share was Rs and the 52-week low was Rs .
The company's trailing 12-month (TTM) EPS was at Rs 7.66 per share as per the quarter ended March 2013. The stock's price-to-earnings (P/E) ratio was 15.05. The latest book value of the company is Rs 28.15 per share. At current value, the price-to-book value of the company is 4.10.
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