BUSINESS

Satyam: Midas to move SC on compensation

Source:PTI
May 20, 2009 16:19 IST

Midas Touch Investors Associations will move the Supreme Court against the decision of the National Consumer Disputes Redressal Commission, which rejected its plea for compensation of Rs 4,987.5 crore (Rs 49.87 billion) for 300,000 retail shareholders of the fraud-hit Satyam.

"We are planning to move the Supreme Court. It might take around a month's time," MTIA director Virendra Jain told PTI.

The NCDRC had earlier expressed its inability to take up the matter in which the Central Bureau of Investigation had already filed charge-sheet against nine persons, including founder-chairman of Satyam, B Ramalinga Raju and his brother B Rama Raju.

"We are of the view that the issues in complaint cannot be examined in summary jurisdiction under (the) Consumer Protection Act, 1986, by this Commission. Accordingly the complaint is dismissed," the NCDRC bench, comprising Justices K S Gupta and Rajyalakshmi Rao, had said.

Midas Touch, a consumer protection organisation, filed a petition before the Commission seeking compensation for the retail investors of Satyam who had suffered because of the accounting fraud perpetrated by IT company's founder B Ramalinga Raju, for past several years.

Besides CBI, the Satyam fraud is also being probed by the Serious Fraud Investigation Office which recently submitted a 14,000-page report to the Ministry of Corporate Affairs.

Source: PTI
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