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Upaid seeks depositions of top Satyam execs
BS Reporter in Mumbai | December 20, 2008 09:01 IST
To add to Satyam Computer Services' [Get Quote] woes, British Virgin Island-based online and mobile payment services player Upaid Systems has filed a motion in the Collin County Texas district court, requesting depositions of company chairman B Ramalinga Raju, chief financial officer Srinivas Vadlamani and global head of corporate governance G Jayaram 'in connection with the attempt earlier this week to strip all surplus cash from the company in a $1.6 billion related-party transaction benefiting the family of Satyam's founder-chairman'.
They have urged the court to ask Satyam for depositions and to respond to Upaid's requests for production of documents, dated December 17, 2008, within 30 days.
Upaid claimed it had served requests for production of documents related to the 'now scuttled Maytas transfers on Satyam' on Friday, but now had to submit this motion to the court 'because Satyam had repeatedly resisted its efforts to depose Raju and Vadlamani in the case.'
A Satyam spokesperson refused to comment as the matter was subjudice.
The current motion is in reply to a disparagement case that Satyam had filed against Upaid wherein the former had claimed that the payment services firm has been disparaging them in the public domain by commenting on the fraud and forgery case that the latter has filed.
The petitioners admit that '. . .while, in the absence of discovery, Upaid does not know all of the necessary facts to conclusively determine whether the proposed transaction was fraudulent...
The company has cited the Texas Uniform Fraudulent Transfers Act which sets out a non-exhaustive list of 'badges of fraud,' to be considered in determining whether a transfer was made with actual intent to defraud. . ..
Upaid has said in these suits that it has suffered substantial damages that exceed $1 billion.
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