Mahindra Satyam can retain tax amount from settlement amount payable to Upiad

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.