CLB asks government to appoint four nominee directors for Maytas Infra

March 5th, 2009 - 7:11 pm ICT by ANI  

Ramalinga Raju

New Delhi, Mar 5 (ANI): The Company Law Board (CLB) on Thursday asked the government to appoint four nominee directors on the board of Maytas Infra.

One of the four nominees would be the chairman of the board, it said.

The CLB has rejected the governments petition to supersede the Maytas Infra board.

The Law Board said that Maytas Infra authorizes the central government to appoint four nominees directors on the board of the company.

The Law Board also ruled that without the prior approval of the CLB, no government agency should initiate any punitive action against these nominee directors.

The government is probing the Maytas Infra and several other companies, which are linked to disgraced Satyam Computers Services founder Ramalinga Raju.

Earlier, the government had extended the Serious Fraud Investigation Office (SFIO) probe from Satyam to Maytas Infra and Maytas Properties suspecting a fraud in the companys dealings.

Union Minister for Corporate Affairs Prem Chand Gupta informed that the government has found evidences of involvement of both the companies in the Satyam scandal, which entails fabrication of accounts, money laundering, round-tripping of money and fraudulent diversion of funds. (ANI)

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