The Supreme Court of New York has asked Upaid Systems Ltd to cooperate with IDBI Bank, the Escrow Agent, and allow it to withhold any applicable taxes from the $70-million settlement amount. This might result in savings of taxes for the scam-hit company.
Mahindra Satyam had filed a law suit in the court early this year, contending that the settlement amount of $70 million included tax liabilities that had arisen out of the settlement.
The court denied the motion brought by Upaid for summary judgment for a declaration that it is entitled to receive the total settlement amount of $70 million from Mahindra Satyam to satisfy the Settlement Agreement, Mahindra Satyam said here in a statement on Monday.
