English Typing Paragraph
▲
The Securities Appellate Tribunal has set aside a Sebi order wherein erstwhile Maytas Infra was directed to disgorge unlawful gains worth Rs 59 crore in
the Satyam Computer scam that came to light in 2009. Maytas Infra was later acquired by IL&FS Engineering and Construction Company. The tribunal's decision
follows an order passed by the Supreme Court in May this year, wherein it was held that several entities, including B Teja Raju, could not be considered
as insiders in the Satyam matter. Teja Raju, son of Satyam scam kingpin B Ramalinga Raju, was a director of Maytas Infra. Citing the Supreme Court ruling,
the SAT said the impugned decision of Sebi which held that Maytas Infra was an insider on account of its director Teja Raju "cannot be sustained". In
September 2015, Sebi had ruled that several entities, including Maytas Infra, had made unlawful gains by transacting in the shares of erstwhile Satyam
Computer Services while they were in possession of unpublished price sensitive information. The transactions were done with complicity and involvement
of Satyam's Chairman B Ramalinga Raju and ex-Managing Director B Rama Raju, Sebi had said. The regulator had directed the entities to disgorge unlawful
gains to the tune of Rs 543.93 crore and out of the total amount, little over Rs 59 crore was to be disgorged by Maytas Infra. As per Sebi, Maytas Infra
was an 'insider' on the ground that its director Teja Raju was reasonably expected to be privy to unpublished price sensitive information relating to
the Satyam Computer scam that came to light in 2009. Maytas Infra was later acquired by IL&FS Engineering and Construction Company. The tribunal's decision
follows an order passed by the Supreme Court in May this year, wherein it was held that several entities, including B Teja Raju, could not be considered
as insiders in the Satyam matter. Teja Raju, son of Satyam scam kingpin B Ramalinga Raju, was a director of Maytas Infra. Citing the Supreme Court ruling,
the SAT said the impugned decision of Sebi which held that Maytas Infra was an insider on account of its director Teja Raju "cannot be sustained". In
September 2015, Sebi had ruled that several entities, including Maytas Infra, had made unlawful gains by transacting in the shares of erstwhile Satyam
Computer Services while they were in possession of unpublished price sensitive information. The transactions were done with complicity and involvement
of Satyam's Chairman B Ramalinga Raju and ex-Managing Director B Rama Raju, Sebi had said. The regulator had directed the entities to disgorge unlawful
gains to the tune of Rs 543.93 crore and out of the total amount, little over Rs 59 crore was to be disgorged by Maytas Infra. As per Sebi, Maytas Infra
was an 'insider' on the ground that its director Teja Raju was reasonably expected to be privy to unpublished price sensitive information relating to
Note: Use Down arrow,Enter,page-down to move to Next Chunk, Use page up to Move to Previous Chunk ▼
Chunk Number: 1