SC asks Satyam to give Rs617 crore guarantee in tax dispute

The Supreme Court said the accounts of the company will be defreezed subject to payment of a bank guarantee of Rs617 crore before its registry by 25th April

New Delhi: The Supreme Court today directed Mahindra Satyam to make its presentation before the Central Board of Direct Taxes (CBDT) relating to its tax dispute within two weeks, and also asked it to furnish a bank guarantee of Rs617 crore by 25th April, reports PTI.

"Within two weeks the petitioner company (Mahindra Satyam) would file a comprehensive petition making its representation before the CBDT giving all requisite information for re-assessment of income for year 2003-2004 to 2008-09," the bench said.

"On the receipt of representation, CBDT would hear and decide the matter within two weeks," the bench added. The court also said the CBDT while passing its order would give proper reasons for it.

The Supreme Court also said the accounts of the company will be defreezed subject to payment of a bank guarantee of Rs617 crore before its registry by 25th April.

The apex body also made it clear that "the chairman of Mahindra Satyam would file an undertaking within 48 hours before the registry of the Supreme Court that the company would file the bank guarantee by 25th April."

Mahindra Satyam also informed the Supreme Court that it will withdraw the petition filed against Tax Department in the Andhra Pradesh high court challenging its direction to pay tax.

The Supreme Court also made it clear that if Mahindra Satyam is not satisfied with the order which would be passed by CBDT, it can challenge it before the apex court.

Last year, the I-T department had served a notice to Mahindra Satyam, demanding an audit of its accounts for the assessment years 2003-04 to 2008-09 as the company was found guilty of illegally claiming tax credit on fictitious income during the period.

Satyam Computer Services, which was hit my a multi-crore fraud committed its owner Ramalinga Raju, was taken over by the Mahindra group in 2009 and rechristened as Mahindra Satyam.

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Food inflation at 8.28% for the week ended 2nd April

This is the third consecutive week of decline in food inflation. The lowest level of food inflation as seen in 2010 was on 20th November when it stood at 8.60%

New Delhi: Food inflation fell to the year's low of 8.28% for the week ended 2nd April, from 9.18% in the previous week, as prices of certain essential items, like pulses and wheat, declined. This is the third consecutive week of decline in food inflation, reports PTI.

The lowest level of food inflation as seen in 2010 was on 20th November when it stood at 8.60%.

During the week under review, prices of pulses fell by 4.76%. Also potato and wheat became cheaper by 2.73% and 1.05% respectively on an annual basis, official data released show.

However, other food items continued to exhibit an upward trend in terms of the rate of price rise.

Fruits became dearer by 24.14% year-on-year, while eggs, meat and fish became 11.02% more expensive during the week under review. Milk was up by 4.05%.

On an annual basis, cereals became dearer by 3.49%, while rice and wheat were up by 2.20%.

Vegetables were up by 5.41%, led by onion whose prices went up by 7.74%.

During the week under review, inflation in non-food articles was 26.77%. Fibres became dearer by 86.74%, while fuel and power was up by 12.97%.

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CBI seeks detention of 5 corporate executives in 2G case

Opposing their bail pleas, the CBI said that some of the key witnesses, belonging to the corporate world, directly worked under them and the possibility of the accused winning them over could not be ruled out

New Delhi: The Central Bureau of Investigation (CBI) today sought "detention" of five corporate executives charge-sheeted by it for their alleged role in the second generation (2G) spectrum allocation scam, saying that they might "abscond" and impede the trial, reports PTI.

Opposing their bail pleas, the CBI, in its reply to the court of additional session judge OP Saini, said that some of the key witnesses, belonging to the corporate world, directly worked under them and the possibility of the accused winning them over could not be ruled out.

"The accused are holding high positions and now that the names of witnesses are disclosed, some of whom are directly working under (them) or are amenable to their directions, possibility of winning over and/or influencing the witnesses is clearly present," the CBI said.

"Considering the matter on record, complicity of present accused in the crime is clearly made out. The act complained of and offences alleged are far serious having made deep inroads in public interest and financial affairs of the state," the CBI said.

The top corporate leaders are Swan Telecom director Vinod Goenka, Unitech Wireless (Tamil Nadu) managing director Sanjay Chandra, and three top officials of Reliance ADA Group Gautam Doshi, Surendra Pipara and Hari Nair, who have been named as accused by the CBI in its first charge-sheet running into 80,000 pages.

The replies, settled by Special Public Prosecutor UU Lalit, appointed by the Supreme Court to assist the special court to try the 2G scam accused exclusively, said there was every likelihood that the accused "will abscond" in order to avoid smooth trial.

Judge Saini, who has been directed by apex court to hold day-to-day trial in the case, had earlier allowed Mr Lalit to file written replies to the bail applications of the corporate executives who were not arrested during the investigation by the CBI.

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