Spice to move CLB on Satyam sale

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New Delhi: B K Modi, Chairman of SpiceCorp, which pulled out of the Satyam bidding process, is planning to approach Company Law Board alleging lack of disclosures in the exercise and violations of CLB directions in many ways.

"We are writing a letter to Justice S P Bharucha and one copy of the same letter will go to CLB as well. We were asking for revelation of bidders' name. If that was followed, then the name of one common director, who was on the board of Satyam as well as on the highest bidder's board would have come to light at that very time," said Modi.

Deepak Parekh, the board member of Satyam, is also on the board of M&M, the major shareholder of Tech Mahindra. But Parekh was not present on the day of bidding to avoid 'conflict of interest'.

Meanwhile, Chairman of Satyam Board Kiran Karnik declined to comment over Modi's allegation.

Modi further said earlier bidders were told to submit at least Rs 1,500 crore cash availability upfront, but it appears that Tech Mahindra had only Rs 700 crore cash available with it and the rest it was now raising from the market.

He said the selection of the highest bidder was also not through e-auction, which is a major lacuna.