Dear Mustang,

1. How do top B-schools look at masters degree? Will I need to justify in my application why I need another masters degree or will I be at an advantage when compared to other candidates with similar profile who do not have a masters degree?
Business schools evaluate all of your transcripts and all are important. However, the undergraduate GPA is the one used by rankings, so schools tend to pay close attention to that measure. It will be important for you to draw the connection from your previous degrees (bachelor's and master's) to your professional experience to a MBA to your future career goals. In essence, you need to have a rationale for the choices you have made in your education and professional experience. There is no advantage or disadvantage to having a master's degree, but it can be helpful to have excellent performance in your graduate studies if your undergraduate studies are average or below average.

2. All the college websites state that they look at undergrad GPA. Will they look at my undergrad GPA even when I have a graduate GPA from US?
Yes, both transcripts will be scrutinized and considered.

3. If the answer to the previous question is "yes", then will my mediocre undergrad degree (3.0-3.1 GPA from a mid tier college) be offset by a more impressive masters degree (3.6 GPA from a top university) and a good GMAT score (730-750)?
Yes, a high GPA in your graduate studies combined with a GMAT score over a 720 will mitigate average/below average performance in your undergraduate studies.

Best of luck,
Lisa