Mahindra Satyam sues previous management to claim Rs 275 cr in damages

Posted By: Religare
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Mahindra Satyam sues previous management to claim Rs 275 cr
IT major Mahindra Satyam has sued the board of directors of erstwhile Satyam Computers along with some employees and the audit firm PriceWaterhouse, claiming Rs 275 crore as damages.

The company, soon going to merge with Tech Mahindra, said it has lost nearly Rs 3,000 crore revenue and Rs 70 crore profits due to actions of previous management and auditors.

The plaintiff company suffered a loss on account of several customers cancelling or terminating contracts with the plaintiff company. The company suffered a loss of Rs 2,966.49 crore and consequent loss of profits from the said contracts. The company is entailed to recover Rs 70 crore from the defendants," Mahindra Satyam said in the petition filed in the city civil court.

The company has charged as many as 128 defendants Satyam founder Chairman B Ramalinga Raju.

The current management has also demanded Rs 51 crore as compensation for the expenses incurred for conducting forensic audit after acquiring the fraud-hit company.

Read more about: satyam computer services
Story first published: Monday, June 11, 2012, 9:31 [IST]
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