Satyam gets refund notices for Rs1,230 crore

Satyam gets refund notices for Rs1,230 crore

Hyderabad: Mahindra Satyam said it had received legal notices from 37 firms claiming a refund of Rs1,230 crore they said they had given as a temporary advance to Satyam Computer Services Ltd.

In a late evening filing with the stock exchanges, Mahindra Satyam said the firms claimed they needed the money back to repay their creditors, including Maytas Properties Ltd and Maytas Infra Ltd, linked to family members of Satyam founder B. Ramalinga Raju.

Raju confessed in January to having doctored the accounts of Satyam to the tune of Rs7,136 crore over several years. In his confession, Raju claimed that he had arranged Rs1,230 crore from 37 firms. In a separate letter to the then board of directors, Raju submitted the break-up of funds borrowed from these 37 firms.

Mahindra Satyam said it had replied to the notices on 14 November stating that the claims are legally untenable. Tech Mahindra took control of Satyam by buying it in an auction.

Raju, his brother and then managing director Rama Raju, then chief financial officer Srinivas Vadlamani and two auditors of Price Waterhouse, S. Gopalakrishnan and Srinivas Talluri, were arrested and are now in judicial custody.