Mahindra Satyam has filed a lawsuit against the former board of directors and some ex-employees of the company seeking damages after the company was hit by fraud.
The lawsuit was filed at the city civil court here on Monday against the erstwhile board, employees, the former statutory auditors, Price Waterhouse, its affiliates and partners seeking damages for inter alia perpetrating fraud, breach of fiduciary responsibility, obligations and negligence in performance of duties.
Several eminent personalities, including Harvard Business School professor Krishna G. Palepu, former dean of Indian School of Business, Mendu Ramamohana Rao, former Cabinet Secretary T. R. Prasad, Vinod K. Dham and Mangalam Srinivasan were members of the erstwhile board when the scam broke out.
Mahindra Satyam was slapped a notice of over Rs.2,000 crore arrears by the Income-tax Department in mid-last year. Satyam Computer Services, renamed as Mahindra Satyam after Tech Mahindra, a part of the Mahindra group, took it over, sent shock waves when its chairman B. Ramalinga Raju admitted to fudging of records in January 2009, raising the curtain for what is billed as the country’s biggest corporate fraud.
Mr. Raju, who was released on bail two months ago by the Supreme Court as the investigating agency CBI could not file charges in time, revealed that the company’s profits had been overstated for years and assets worth close to Rs.14,000 crore had been falsified.
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