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Govt seeks CLB nod to appoint new boards for Maytas firms

Govt seeks CLB nod to appoint new boards for Maytas firms
PTI
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First Published: Tue, Jan 20 2009. 05 51 PM IST
Updated: Tue, Jan 20 2009. 05 51 PM IST
New Delhi: The government is believed to have moved the Company Law Board (CLB) seeking to supercede the boards of Maytas Properties and Maytas Infrastructure— two companies promoted by Satyam’s tainted founder Ramalinga Raju.
The Corporate Affairs Ministry had yesterday ordered a ‘Serious Fraud´ probe into the affairs of the two companies, saying there appeared a ‘nexus’ between the two firms and scam-hit Satyam.
The government has already dismantled the board of Satyam and nominated six directors to run the company.
The new Satyam board has already met twice and is looking into liquidity and legal issues, besides commencing search for a new CEO and a CFO.
“We are in touch with the banks to help out and we have got a good response there. We are in touch with the employees to understand the business, organisation better. We met some of them on Saturday and we will meet more this week,” Satyam’s newly appointed director Tarun Das said adding: “We have looked at the legal issues which the company faces because of the class actions suits filed in America and have appointed legal advisors to deal with that.”
The move to get CLB nod for appointing its nominees on the boards of Maytas firms comes on the heels of the government ordering a ‘Serious Fraud´ probe into the affairs of Maytas Properties and Maytas Infrastructure.
It was Satyam’s abortive move to acquire the two Maytas firms that betrayed problems within the IT company. The Satyam board had on 16 December announced its intent to buy the two companies — promoted by Raju’s family. It, however, called off the deal within hours after strong investors’ dissent.
On 7 January, Raju disclosed that he had been inflating profits of the company for years and created fictitious assets. He had then described the move to acquire the Maytas firms as an attempt to fill fictitious assets with real ones.
Maytas Infrastructure, among others, is executing the Hyderabad Metro project.
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First Published: Tue, Jan 20 2009. 05 51 PM IST