'P K Madhav, the whole time director and chief executive officer of Maytas Infra Ltd, tendered his resignation from directorship as well as CEO of the company owing to personal reasons,' Maytas said in a filing to BSE. Maytas Infra, promoted by the family of disgraced Satyam founder B Ramalinga Raju, has been hitting headlines ever since the IT firm announced a deal to acquire the company, which was later called off following strong opposition by investors.
Maytas had moved the court challenging termination of its contract by Utility Energytech and Engineers last month. Maytas had also sought a temporary stay to the termination, but Justice Anup Mohta of Bombay High Court last week refused to pass any interim order.
B Teja Raju, the elder son of Saytam Computer chief B Ramalinga Raju, on Saturday took over additional charge of chief executive officer of Maytas Infra in place of P K Madhav, who was arrested on December 16, 2008 in connection with the Nagarjuna Finance depositors' case.
Three financial institutions--IDBI Bank, ICICI Bank and IL&FS Ltd--that have lent money to Maytas Infra informed the Company Law Board on Friday that they are not interested in board membership in the Hyderabad-based firm.
In a filing to the Bombay Stock Exchange, Maytas Infra said a meeting of the board of directors of the company will be held on Thursday to appoint Vaish and Jain as directors of the company in accordance with the order of the Company Law Board. Former ICAI president Ved Jain and noted tax lawyer O P Vaish were named as new board members of Maytas Infra following CLB directing the government to appoint four nominee directors, including a chairman, on the company's board.
Maytas Infra Ltd will again petition the Company Law Board to allow it to induct the Saudi Binladen Group (SBG) as its strategic partner, according to IL&FS and Maytas' chairman, Ravi Parthasarathy.
Maytas Infra, the listed company promoted by the family of Satyam founder B Ramalinga Raju, is looking to rationalise its employee strength. Consequently, there would be some job cuts and inductions.
The difference, however, lies in Satyam over-stating its revenue, cash position and profits, while Maytas Infra under- stated its profit in April-June quarter and the discrepancies were 'duly accounted for' in the company's books later. While the role of auditors in Satyam fiasco is questionable as of now, it was statutory auditors of Maytas Infra who pointed out the under-statement in its books.
The government has already ordered inspection by registrar of companies, Hyderabad, into eight subsidiaries of Satyam Computer and Maytas Infra and Maytas Properties, the companies promoted by the kin of disgraced Satyam founder B Ramalinga Raju.
Shares of Maytas Infra hit its lower circuit just after opening, to halt trading at Rs 105, down 4.99 per cent on the Bombay Stock Exchange. A similar fate was faced on the National Stock Exchange, where the scrip touched an intra-day low of Rs 105.40, down five per cent. A total of 971 shares got traded on both the bourses.
The newly appointed (by the government) board members, O P Vaish and Ved Jain, said the company and its lenders were expected to reach an agreement in this regard by March 25. The board met in Hyderabad under the chairmanship of Vaish and sought information on the state of the company and the various projects it was implementing and negotiating. Vice-Chairman B Teja Raju and Additional Director B Narasimha Rao were present.
Infrastructure development firm Maytas Infra on Thursday said it has bagged an order worth Rs 790 crore (Rs 7.9 billion) from IL&FS Transportation Networks Ltd (ITNL) for road construction work.
Corporate Affairs Minister Salman Khurshid on said the government will consider strategic sale of Maytas Infra if the company board decides to do so.
The company had approached banks with a CDR request for about Rs 1,700 crore. However, according to company sources, the banks felt that Maytas must shed the flab, which includes dilution of stake in the Bangalore elevated tollway to raise funds before the CDR is granted. It has also been reportedly told that it should disengage from various projects which it cannot take forward.
IL&FS Financial Services has acquired 14.5 per cent stake in Maytas Infra, promoted by former Satyam chairman B Ramalinga Raju's kin, through invocation of pledge and off-market transactions.
Infrastructure major IL&FS has replaced the B Ramalinga Raju family as promoters of crisis-hit Maytas Infra and will pump in Rs 55 crore (Rs 55 million) to revive the company.
IL&FS, which, along with IFCI and Sicom, had extended loans to the Raju family against shares of Maytas Infra, has asked the government to supersede the board of the Hyderabad-based company.
Maytas Infrastructure Limited has reported a net loss of Rs 251.86 crore for the year ended March 31, 2010, compared with a net loss of Rs 473.54 crore last year. Its net revenues declined 33.19 per cent to Rs 1,098.87 crore from Rs 1,644.65 crore in the previous year.
The Ramalinga Raju family promoted Maytas Infrastructure on Thursday said its chairman and non-executive director R C Sinha has tendered his resignation.
Hyderabad-based Maytas Infra has issued a legal notice to Vedanta Aluminum for "fraudulently and illegally" encashing two bank guarantees worth Rs 64 crore
Within hours of Company Law Board orders, the government on Thursday appointed its nominees on the boards of Maytas Infra and Maytas Properties, the companies promoted by the kin of disgraced founder of the Satyam Computer Services B Ramalinga Raju.
The Andhra Pradesh government has scrapped its 10-month-old agreement with Maytas Infrastructure-led consortium for the implementation of the prestigious Rs 12,230-crore (Rs 122.390 billion) Hyderabad Metro Rail Project.
Andhra Pradesh chief minister YS Rajasekhara Reddy said on Sunday public projects being implemented by Maytas Infra in the state, individually or as part of consortia, were being closely reviewed. Andhra Pradesh chief minister YS Rajasekhara Reddy said on Sunday. The total value of the projects awarded to Maytas and its joint venture partners amounts to Rs 3,800 crore (Rs 38 billion).
The government decided to withdraw its two nominees from the Maytas Infra board following the Company Law Board order handing over the reins of Maytas Infra, promoted by kins of disgraced founder of Saytam, R Ramalinga Raju, to IL&FS.
In what could bring some respite to Maytas Infra, which is caught in a controversy after Satyam aborted its bid to acquire it, the Andhra Pradesh government refused to see the Satyam issue as a factor that would impact the Rs 12,000-crore (Rs 120 billion) Hyderabad Metro Rail (HMR) project, which is being executed by a Maytas-led consortium.
The loan was offered to Maytas by a consortium of banks to fund one of its infrastructure projects that has an execution period of few years. However, BOI has not given any direct credit to Maytas, a BOI official said. Maytas Infra came under the scanner of regulators and other agencies probing Satyam fiasco after Hyderabad-based IT giant plunged into a crisis on account of gross manipulations committed by its former chairman B Ramalinga Raju.
Maytas Infra was entrusted with the task of constructing a township colony at Rs 233 crore (Rs 2.33 billion) in Jharsuguda following a contract in March 2008, a Vedanta official told PTI.
The company, promoted by former Satyam Computer Services chairman B Ramalinga Raju's family, was originally required to announce its third-quarter results by the end of this month. Various agencies, including the state Criminal Investigation Department, have been probing the Maytas affair after B Ramalinga Raju admitted to serious financial fraud in Satyam.
Infrastructure Leasing and Finance Company is poised to acquire management control of the troubled infrastructure company Maytas Infrastructure owned by family members of Ramalinga Raju, former chairman and managing director of Satyam Computers, who confessed to financial fraud on January 7. The leading non-banking finance company is emerging as a government preference given its prominent role in infrastructure finance in the country.
Things went from bad to worse since December 2008 for people who purchased bungalows, villas and apartments at Maytas Hill County, promoted by Maytas Properties Limited (MPL) -- the company run by B Rama Raju (Jr), the younger son of Satyam Computer Services founder and former chairman B Ramalinga Raju.
The World Economic Forum on Wednesday said it will wait for the legal investigation of crisis-ridden Maytas Infra to be completed before deciding on the infrastructure entity's status on its list of prestigious companies worldwide.
Andhra Pradesh's Municipal Administration and Urban Development Minister Anam Ramnarayana Reddy said a meeting would be held shortly and various milestones achieved in the project ever since it was awarded to Maytas Infra would be reviewed. The concession agreement and its clauses would be reviewed at the meeting, said a senior official, adding the government was serious about the clauses and there was no question of taking a soft stance.
The hammering in the stock prices of the company, that was promoted by the family of disgraced Satyam founder B Ramalinga Raju started from January 7, the day Raju made public an about Rs 7,800-crore (Rs 78-billion) fraud. Shares of the company fell five per cent immediately after opening on the BSE and the National Stock Exchange and witnessed lows of Rs 117 on BSE and Rs 116.75 on NSE. On the volume front only 525 shares were traded on the bourses.
Under the CDR package, the company has sought a debt-restructuring of Rs 2,800 crore, including Rs 1,800 crore for Maytas Infra and another Rs 1,000 crore for various special-purpose vehicles. Sources say the investment companies may have diverted the Rs 400 crore to Satyam Computers. "As per the account trail, this loan of Rs 400 crore was finally given to Satyam Computer, routing through these investment arms," sources close to the CDR package said.
Maytas Infrastructure Ltd, the listed company floated by the promoters of Satyam Computer Services, plans to raise Rs 800 crore to Rs 1,000 crore through asset sales plus loan and guarantees from banks to complete various projects, including the prestigious Hyderabad Metro, and to bid for some new projects that are coming up for auction.
Referring to the various infrastructure projects being executed by Maytas and its joint venture partners in the state, the chief minister said: "If we have genuine doubt about their capabilities, we will look at alternatives. If work can go without any problem, we will continue. We will only see that there is no risk to the government."
IT major Wipro on Wednesday ruled out taking over scam-hit Satyam Computer or Maytas Infra.
The government had removed all directors related to the Raju family from the board of Satyam before it was handed to the Mahindra group.
Andhra Pradesh Finance Minister K Rosaiah said the government would not cancel the projects awarded to Satyam sister concern Maytas Infra or blacklist the company. Instead, it would prefer to tackle each project individually. There would be legal complications and a price the government would have to pay if it calls off a project awarded to a company and vice-versa. Also, the re-tendering of the same work may be costlier due to the variation in prices, he said.
The government is understood to have ordered a probe into Satyam Computer Services' controversial decision to buy two group-promoted companies and then reversing the deal within a few hours under pressure from investors.
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