Maytas Infra diverted IPO funds: RoC

Maytas Infra diverted IPO funds: RoC
Comment E-mail Print Share
First Published: Mon, Jun 29 2009. 11 05 PM IST
Updated: Mon, Jun 29 2009. 11 05 PM IST
New Delhi: The Registrar of Companies (RoC), in its report on Maytas Infra Ltd, has alleged violation of many provisions under the Companies Act, 1956, including diversion of funds from an initial public offering (IPO).
The report, submitted to the ministry of corporate affairs, has made serious allegations against the role of two family members of B. Ramalinga Raju who are on the board of Maytas Infra, people familiar with the matter said on condition of anonymity.
The report alleges that the company and its directors diverted funds from the IPO for purposes other than those specified in the firm’s red herring prospectus. It goes on to allege that the IPO was designed with an intent to falsely induce the public to invest and made false, deceptive and misleading statements.
The ministry had ordered an inspection the into firm’s books of accounts on 7 February on the basis of a recommendation by its Serious Fraud Investigation Office.
cnbctv18@livemint.com
Comment E-mail Print Share
First Published: Mon, Jun 29 2009. 11 05 PM IST