The Indian government will withdraw four of the six nominees that it appointed to Satyam Computer Services.

It received permission on Friday from the country's Company Law Board (CLB) to make the move. The news follows the acquisition by Tech Mahindra of a dominant stake in the company.

The government has been allowed by the CLB to retain two of its nominees on the board for as long as it decides, but not longer than three years. The nominees will continue on the board to ensure that the bid conditions, and conditions imposed by the CLB are complied with "in letter and spirit," the CLB said in a statement.

The CLB is an independent, quasi-judicial body under the Indian government.

Satyam was plunged into a scandal after the company's founder, B. Ramalinga Raju, said in January that the company's revenue and profit had been inflated for several years.

The government soon after superseded the Satyam board, and nominated six of its representatives to the company's board to steer it through the financial scandal, and mitigate the risk of the company losing a large number of customers.

Tech Mahindra won a bid in April to acquire a majority stake in the company. It currently holds about 43 per cent of the equity in the company, after its offer to purchase shares from the public did not get an adequate response.

The buyer has appointed its representatives to the board, as well as new management including a new CEO, chief financial officer, and executive vice chairman of the company. It also adopted a new "Mahindra Satyam" go-to-market brand.

The company's accounts for several years are still being restated, and the prosecution of the key accused in the financial scandal, including Raju, is in progress. The government may have retained two of its representatives on the board to aid the investigations, analysts said.