We are clean, Maytas tells BSE

07 March 2009

Maytas Infra, the company promoted by the kin of disgraced founder of Satyam B Ramalinga Raju, says the government had failed to establish any case of fraud or irregularity against the real estate firm, vindicating its stand that no funds were diverted from Satyam Computer to Maytas.

"The case of Maytas Infra Ltd is not like Satyam Computer Ltd," the company informed the Bombay Stock Exchange, a day after the Company Law Board (CLB) rejected the petition of the government to supersede the board of the real estate company.

"In view of the above (CLB) order, it is clear that prima facie, there is no fraud established by the government against the company nor is there any irregularity established till date," it added.

However, the CLB has passed an interim order on Maytas Infra which allows majority representation of the government representatives on the board. It has directed that four government nominees to be placed on the Maytas Infra board and one of its nominees be placed on the board of sister concern Maytas Properties. Also, one out of the four directors will be the chairman of the board.

Earlier, the government extended the scope of Serious Fraud Investigation Office (SFIO) probe into Satyam to cover the twin Maytas companies whose proposed acquisition by Satyam was aborted by a shareholder revolt.

Following the CLB directive, the government had appointed former ICAI president Ved Jain and noted tax lawyer O P Vaish on the board of Maytas Infra. Jain was also nominated to the board of Maytas Properties.