[1]New York: Nearly five years after India’s biggest corporate scam broke out at erstwhile Satyam Computers, a US court has ordered fresh proceedings into charges that the IT firm had fraudulently induced Venture Global Engineering into a partnership.
Satyam was later acquired by Tech Mahindra and its entire business was integrated with the new owner earlier this year.
The latest ruling by a US Appeals Court follows an earlier direction issued by a Districts Court of Michigan, which had dismissed claims made by Venture Global Engineering (VGE) against Satyam with regard to a joint venture. In its order dated September 13, the Appeals Court has reversed the judgement of the district court and has ordered further proceedings into the matter.
In its appeal, VGE and the Larry J Winget Living Trust alleged that Satyam Computers had “induced” them to form a joint venture by “misrepresenting its financial stability and general suitability as a business partner.”
Satyam had argued that VGE should have brought their claims during an arbitration in 2005.
Links:
[1] http://103.241.136.51/anand-mahindra-listens-to0jpg-478