Consumer forum rejects compensation plea of Satyam investors
By IANSMonday, May 11, 2009
NEW DELHI - A consumer redressal forum Monday to hear an investor body’s petition seeking a compensation of nearly Rs.5,000 crore (50 billion) for 300,000 retail shareholders of fraud-hit Satyam, saying it is not equipped to deal with such cases.
‘We do not have the infrastructure to deal with such kind of petition…Central Bureau of Investigation (CBI) and Company Law Board (CLB) are already seized with the matter,’ observed a bench of the National Consumer Disputes Redressal Commission (NCDRC) while rejecting the Midas Touch Investors Association’s (MTIA’s) petition.
The bench comprised Justice K.S. Gupta, presiding member and Rajyalakshmi Rao, member.
Midas Touch, a consumer protection organisation, filed a petition before the consumer forum seeking compensation for the retail investors of Satyam who had suffered because of the accounting fraud perpetrated by the founder of the Hyderabad-based IT company, B. Ramalinga Raju, for years.
The petition sought a compensation of Rs 4,987.5 crore for about 300,000 retail investors of Satyam on the basis of a formula.
