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Outgo on legal spats is less than Rs 580 Cr: Satyam

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CIOL Bureau
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MUMBAI, INDIA: Fraud-hit Satyam Computers Services, which was neck-deep in trouble following the disclosure of founder Ramalinga Raju about the financial frauds in the company, said that the outgo on legal disputes at the company may not exceed Rs580 crore against the reported Rs10,000 crore.

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“We don’t expect the expenses related to the legal disputes to run as high as reported in certain sections in the media. We expect some of the cases such as the Upaid case to get over by November,” a PTI report quoted a senior official as saying on condition of anonymity.

After Satyam had reported a surprise profit in the October-December quarter, there were reports that the company may not be in a good financial state as the outgo on legal disputes at the company may be to the tune of Rs10,000 crore.

The official also said the US class action suits will get over in another two years.

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The report of profit had helped the shares of Satyam go up, which is being traded for Rs 76.55 as of now. At one point the share value had touched Rs 80.45.

Last week Satyam had re-entered the league of India's top 100 companies in terms of market valuation. The increase in share value had helped the growth of Satyam's market capitalization to about Rs 7,800 crore thus helping it to re-enter the elite club.

Meanwhile, another report said the government has granted a one-year extension to Satyam for completion of three special economic zones in Andhra Pradesh, said the report.

The Commerce Ministry has granted extension of time to Satyam’s two IT/ITeS SEZs in Hyderabad and the one at Thotlakonda in Visakhapatnam up to June 2010, the report added.

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