B K Modi can challenge Satyam bid, says legal expert

26 March 2009

Earlier yesterday, there were news reports that B K Modi had said he may pull out of the Satyam bid because it lacked transparency (See: After iGate, Spice Group may pull out of Satyam bidding).

Hitesh Jain, partner, ALMT Legal, told CNBC-TV18 that Modi cpould legally challenge the the Satyam board if he felt the bidding process wasn't transparent and did not offer a level-playing field to all bidders even if the request-for-proposal had conditions that the bidders could not legally challenge the Satyam's board decisions.

''He (Modi) can certainly look at the civil courts or the writ petition on the ground that this is a government appointed board and they have not followed the principles of the fair play,'' Jain said.

CNBC-TV18 shares Jain's exclusive interview with domain-b

Earlier today we heard reports from one of the bidders, B K Modi, saying that there is lack of transparency and if he doesn't get the required information, he may not consider bidding. Do you sense perhaps there could be a legal tussle on the cards? Could a bidder like Modi become a spoiler?
One thing is very clear. In the bidding process, two things have to be ensured - transparency and level-playing field. If any person who is aggrieved and feels that there has not been any transparency and there are some people who have been favoured, then certainly he can play a spoiler's action.

It is a two-stage process. First is a technical process. Second is the financial process. If a person is removed or disqualified at the technical process, and he feels that a fair procedure has not be followed, certainly he can end up playing a spoiler.