Settlement in US: Satyam yet to get RBI nod for fund-transfer

Apr 07, 2011 |

Hyderabad

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Mahindra Satyam – brand identity of Satyam Computer Services Limited – which recently announced that it had agreed to pay USD 125 million to settle class action suits in USA, is yet to get Reserve Bank's nod to transfer the funds, a senior company official said.

"It (RBI) wanted some clarifications. We are in the process of submitting documents. It is just a matter of time," the official told PTI.

RBI has to approve of the fund transfer as it involves huge foreign exchange, the official added.

A group of investors in USA had filed suit for damages after the then-Chairman and Satyam Founder B. Ramalinga Raju confessed to accounts manipulation in January 2009.

On the day the settlement was announced, Vineet Nayyar, Mahindra Satyam's Chairman, had said that USD 125 million would come from cash reserves, which were at Rs 2,900 crore, and company did not see any problem in getting the money.

The company may also approach the RBI with regard to the latest settlement with US Securities and Exchange Commission (SEC), which has slapped penalty on Mahindra Satyam and its auditors PriceWaterhouse India up to USD 17.5 million.

Satyam scrip closed at Rs 75.90 on Thursday on Bombay Stock Exchange, up 1.34 per cent over the previous close.

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