The Hindu Business Line : Maytas Infra non-executive Chairman quits

Hyderabad, Jan. 8 Maytas Infra, the failed acquisition target of Satyam Computer Services, is in the thick of action, post the startling revelations made by Mr B. Ramalinga Raju, Chairman of the latter on Wednesday.

While the Non-Executive Director and Chairman of Maytas Infra, Mr R.C. Sinha, put in his papers on Tuesday, one of its key consortia partner’s in large infrastructure projects — NCC Infrastructure has said it was closely monitoring the situation as far as the projects were concerned.

On another front, there are rumours in the market about large Indian infrastructure companies evincing interest in investing in the company. Maytas Infra headed by Mr Teja Raju, son of Mr B. Ramalinga Raju, also faces image issues with questions raised on the financial intentions behind the aborted buy out by Satyam recently.

Curiously, the auditors of Maytas Infra in their annual report for 2007-08 had pointed out certain discrepancies in accounting. It observed: “Had the company for such investments in jointly controlled entities, liabilities, income and expenses, included in the financial statement would have included the company’s proportionate share in assets and liabilities in such companies and the reported consolidated profit before tax would have been lower by Rs 35 crore.”

Taking stock

Meanwhile, the Senior Vice-President (Finance) of Nagarjuna Construction Company (NCC), Mr Y.D. Murthy told Business Line that “We are taking stock of the situation following the developments in Satyam vis-À-vis our partnership with Maytas Infra.”

He said in the Rs 1,225-crore Machilipatnam deep water Port Project, work was in the initial stage with just 1-2 per cent of the project cost spent so far. The consortia was also asking the State Government to give land for the planned SEZ, which is part of the agreement. Only after that the issue of financial closure would come and the role of the consortia members to raise necessary funds.

In the case of the two airport’s in Karnataka — Gulbarga and Shimoga — also where Maytas-NCC are consortia partners, the implementation process was yet to begin, post the laying of the foundation stone during late 2008, Mr Murthy added.

Meanwhile, the Maytas CEO, Mr P.K. Madhav, who was arrested by Hyderabad Police for his involvement in the Nagarjuna Finance Ltd case, was released on bail bringing some respite to the company.

The company is also grappling with issues pertaining to questions raised on the implementing capability of the over Rs 12,000-crore Hyderabad Metro Rail project, which the State said it was reviewing.

The company has also attracted attention from the leading opposition parties in Andhra Pradesh, which are demanding the Government to make public documents pertaining to projects awarded to the Maytas-led consortia.

The company has an order book of over Rs 11,000 crore and is into implementing projects on road, power, oil and gas, irrigation etc along with port, airports, which are new.