In what is described as a major corporate spat, Mahindra Satyam has filed a civil suit in the court of the chief judge in city civil courts at Hyderabad on Monday against the 123 employees of the auditing firm PW working in its offices at Bangalore, Hyderabad, Kolkata and Mumbai and the disgraced former Satyam computers chairman B. Ramalinga Raju and other members of its former board.
It had demanded, in the civil suit, an unspecified amount of damages from the auditing firm and from the former management making them responsible for the country’s biggest ever corporate fraud. According to Mahindra Satyam Chairman Vineet Nayar, the damages the company sought exceeded the $210 million it spent to settle its legal dues after it took over the scam hit company.
Price Water is the international auditing firm that audited the accounts of the former Satyam Computers. The Mahindra Satyam action comes two days after the auditing firm filed a suit in the city civil court seeking Rs.100 Cr damages from the former Satyam Computers founder Ramalinga Raju and other members of its board.
Mahindra Satyam, which took over the scam hit company in April 2009, informed the bourses on Monday about the defamatory suit.
Both Mahindra Satyam and the auditing firm have been involved a verbal war for the past one year blaming each other about certain issued being faced by the company. The verbal war has finally culminated in the reciprocal civil suits. (JUBS)