A Court in the US held Prithvi Information Solution and its associates guilty for $17 million fraud to Kyko Global Inc. On failure of payment, the Sheriff seized and auctioned personal assets of the company founder Madhavi Vuppalapati
Following directions from a US District Court to recover money, the Sheriff from King 
County auctioned personal assets of Madhavi Vuppalapati, founder of Prithvi Information Solutions Ltd to recover $17 million.
Canada based Kyko Global Inc had filed a fraud case against the Indian company in the Washington Court. In its petition, Kyko Global had alleged that Prithvi and its affiliates created fictitious, counterfeit customers to get an advance payment of $17 million from them.
In its Judgment on 6 September 2013, the Court said, “Judgment should be entered against Prithvi Information Solutions Ltd, Prithvi Information Solutions International LLC, Prithvi Catalytic Inc, Prithvi Solutions Inc, Madhavi Vuppalapati, DCGS Inc, Inalytix Inc, Avani Investments Inc, Ananya Capital Inc, EPP Inc, Financial Oxygen Inc, Huawei Latin American Solutions Inc and L3C Inc in the amount of $1,75,68,854 plus prejudgment interest accruing at the rate agreed to between the parties at 2.45% per month in the total amount of $7,96,776, as confessed to by the Defendants.”
However, Prithvi and its associates including Vuppalapati failed to pay $17 million along with penalty charges. This lead to the Sheriff auctioning personal assets like Lexus car, jewellery and household good belonging to Vuppalapati on 20 March 2014.
In November 2011, Kyko said it entered into an agreement with Prithvi for certain factoring services. As per their agreement, Prithvi had to identify certain of its customer account receivable for IT services and authorize direct payment to be made to Kyko. Prithvi Information Solutions offered account receivables of few major customers to Kyko. However, none of the customers Prithvi offered had any business relationship with it.
When Kyko tried to acknowledge that these clients will make payments directly to Kyko, they got verifications, but in reality, it was the associates of Prithvi that had posed as clients and created and executed the verifications. When Kyko requested Madhvi Vuppalapati to be put in touch directly with the representatives of the five clients, she turned down the request saying that it will be detrimental to their relationships with these clients.
Over a next two years, Vuppalapati and her associates continuously deceived the unsuspecting Kyko, in the process and kept them in the dark, Kyko alleged. Finally, while attempting to collect outstanding dues, Kyko came to know, through its own internal investigation that Prithvi had created fictitious customers to deceive Kyko and extract more monies from it.
In order to get money back, Kyko filed a lawsuit on 16 June 2013 against Prithvi Information Solutions at the US District Court. On 8 August 2013, Kyko moved the court for issuance of judgment in amount against defendants in pursuant to confession of judgment and the motion was granted by the court.
In September 2013, Kyko filed a Writ of Garnishment against Prithvi Information Solutions. Kyko claimed damages of $18,431,765.90 ($18.43 million) inclusive of balance of judgment, prejudgment interest and interest of judgment from 9 June 2013 to 23 September 2013.
As Madhvi Vuppalapati failed to make the payment to Kyko, on 12 February 2014, the court sent notice directing sheriff to do auction and sell her personal assets including her Lexus car, jewellery and miscellaneous household items. The Sherif auctioned her assets on 20 March 2014.
Moneylife earlier wrote about scandalous saga of Prithvi Information Solution as it was involved in all kinds of financial manoeuvrings read; Prithvi Info Solutions: Why regulators are silent over the scandalous saga?
Read more stories about Prithvi Information Solution and its frauds here,
Prithvi’s recent acquisition despite multiple scandals and losses raises a stink
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
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There are Laws on the books but for whom.? It is mind set that if they got away in India why not in USA. Most of these companies are honest but those like this did not come to do business but to collect as much money as possible.
They have no loyalty to India or USA but money and thus morals donot play any role.
After all look at all the SCAMS in Bombay stock exchange.
Only way such firms with such mentality can learn to spend few years in a jail before deported.
Just ignoring cos from this city helps you save money. Wonder if SEBI has anything to say to the India listed company..
What is if GOI is going to take any action for giving such black mark to the nation
I cannot express how gleefully joyous I was to discover this article, and the fact that her personal assets have been seized. I can only hope that this action followed an arrest by the King County Sheriff's department, as she deserves to be in jail
Why have we failed to understand that world is very different when it comes to hard work, ethics Law and Order. We are giving a black eye to our nation. Yes we might not be alone but number of cases against our people high and low are more than others WHY????