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AP High Court stays Mahindra Satyam attachment order
February, 24th 2012

The Andhra Pradesh High Court has stayed the order of the Income-Tax Department that sought to attach properties of Mahindra Satyam in the Rs 617-crore tax demand issue

We have challenged the provisional order in the High Court. The court has granted the stay order after hearing the case, Mr G. Jayaraman, Company Secretary of Mahindra Satyam, told Business Line.

One January 30, the Additional Commissioner of Income Tax (Central Range - 3, Hyderabad) served the order, attaching the land and buildings of Mahindra Satyam under Section 281B of the Income Tax Act, 1961.

Incidentally, the company received an interim relief order from the same court on January 31 in the writ petitions filed by it, questioning the orders of Central Board of Direct Taxes and the draft assessment orders (for 2002-08 when the company witnessed massive financial fraud).

While posting the issue to February 28, the court asked the department not to encash the bank guarantee furnished by the company.

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