Satyam fraud case: HC allows U.S. court to secure documents
New Delhi, July 18: The Delhi High Court on Fridayallowed a request of U.S. district court to examine witnesses and secure documents related to accounting fraud in Satyam Computer (now Mahindra Satyam) from IT industry body NASSCOM.
Justice S. Ravindra Bhatt allowed the plea of UPAID Systems, a British mobile solutions company which had claimed $1 billion compensation from Satyam alleging that fraudulent activities by the IT firm caused huge losses.
UPAID Systems had approached the District Court of Texas and the U.S. Court had issued a letter of request for recording and deposition of witnesses and answers of some written questions regarding fraud by Satyam from NASSCOM.
To get it implemented in India, UPAID Systems had approached the Delhi High Court.
After hearing the plea, Justice Bhatt appointed advocate Jayant Tripathi to obtain the written testimony of the NASSCOM to be submitted in the U.S. court.
UPAID Systems had submitted in the U.S. court that NASSCOM’s testimony was important in the matter as Mahindra Satyam was its member and the founder of the firm, B. Ramalinga Raju, was former Chairman of the industry body.
It alleged that negligent misrepresentation, forgery and breach of contract by Mahindra Satyam. Satyam has sold some geographical patterns to UPAID, which allegedly turned out to be invalid. The suit is still pending in the U.S. court.
“Jayant Tripathi, advocate is hereby appointed to examine the witnesses of NASSCOM and secure the documents sought for, as requested by the letter of request… He shall prepare the report and ensure that the depositions recorded and copies of documents furnished with him are kept in a sealed cover,” the court said.
During the proceedings, NASSCOM and Mahindra Satyam opposed UPAID’s request on the ground of territorial jurisdiction.
This was rejected by the court by observing “respondents objections are merit less.”
The court also directed that all such enclosures requested by the U.S. court should be filed before it within a week and listed the matter on July 27 for reporting the compliance of its order.
—PTI