Maytas Infra to contest government move to remove directors

February 18th, 2009 - 9:56 pm ICT by IANS  

Ramalinga RajuHyderabad, Feb 18 (IANS) Maytas Infra Ltd, promoted by the family of Satyam Computers founder B. Ramalinga Raju, has decided to contest before the Company Law Board (CLB) the petition filed by the government to remove its board of directors.
Maytas said it was yet to receive a copy of the petition filed by the ministry of corporate affairs (MCA) before CLB Tuesday for change of the board of directors.

CLB has listed the petition for hearing Feb 24, said Maytas in a statement here Wednesday.

“Maytas Infra had already filed a caveat before the Company Law Board. In pursuance of the caveat, the ministry of corporate affairs has to serve a copy of the petition to Maytas before it is being heard,” the company said.

The statement said the bench of the CLB directed the government’s counsel to serve a copy of the petition to Maytas and has listed the matter for hearing Feb 24.

The government Tuesday moved the CLB to remove the board of directors of Maytas Infra and Maytas Properties.

Corporate Affairs Minister Prem Chand Gupta said the government had found evidence that the two companies were involved in money laundering, fraudulent accounts and diversion of funds.

Former Satyam chairman Ramalinga Raju, his brother B. Rama Raju, Satyam’s former chief financial officer Vadlamani Srinivas and two former auditors are now in prison in connection with the Rs.70-billion (Rs.7,000 crore/$1.43 billion) accounting fraud.

Mytas Infra is headed by B. Teja Raju while Maytas Properties is run by B. Rama Raju (junior). Though Maytas Infra is a listed firm, the Raju family holds 36 percent equity stake in it.

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