Ramalinga Raju Puts Break on Satyam-Tech Mahindra Merger

A Satyam official said, "We are contesting the claims for recovery filed by these entities and we cannot treat the Rs 1,230 crore as unsecured loans unless the government agencies investigating the matter direct us to do so.” IL&FS, which had earlier also moved the courts for recovering their dues, raised objections at the court summoned EGM. G Venkateswar Reddy, Company Secretary of IL&FS Engineering and Construction Company said, "We are now moving the AP High Court to stall the merger in its current form."

The Raju family firms have also given out several legal notices on the new management of Satyam led by the Mahindra group, including moving civil courts, looking forward to recover what they say is their money along with interest. Reddy said, "The dues, with penal interest would exceed Rs 2,000 crore."

A legal expert with a Mumbai-based corporate law firm, who did not want to be named, said that even if majority vote in favour of the merger scheme, the high court will typically invite objections from the stakeholders again through advertisements."Court will take a call on clearing the merger in its current form based on the seriousness of the objections," the lawyer said.