New Delhi: The Union Government will take over Maytas Infra and Maytas Properties, companies owned by the family of B Ramalinga Raju, the disgraced founder of Satyam Computers Ltd.
Company Affairs Minister P C Gupta announced on Tuesday the Government suspects Satyam-like scam in the infrastructure companies and would appoint new directors to the them.
The Government has moved the Company Law Board (CLB) to sack the boards of two Maytas firms owned by the Raju family, said Gupta. "We have approached the CLB to remove directors of Maytas Infra and Maytas Properties from their respective boards," Gupta said. The CLB will take up the matter on February 24.
Satyam, the country’s fourth-largest outsourcer, is battling for survival since January 7 when Raju quit as chairman revealing profits have been falsified for years and $1 billion of cash and bank balances did not exist in the country's biggest corporate scandal.
Satyam’s downfall began when the Raju’s top officials tried to push the company’s board on December 16, 2008 to take over Maytas.
Satyam’s CFO and CEO tried to push the board to put its stamp on the acquisition of Maytas by paying Rs 6,410 crore. The proposal to take over Maytas was called off because of shareholder outcry.
Mytas is headed by Ramalinga Raju’s younger son B Teja Raju. Though a listed firm, the Raju family holds 36 percent equity stake in Maytas.
Comments
0 comment