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Mr P.C. Gupta

Our Bureau

New Delhi, Feb. 17 With the ‘nexus’ between the Satyam Computer Services and its two group companies – Maytas Infra Ltd and Maytas Properties Ltd – now established, the Government moved the Company Law Board (CLB) on Tuesday to dissolve the present management of the two companies. It also sought the CLB’s nod to appoint Government nominees for the two companies.

The application to the CLB was based on the information given by the Serious Fraud Investigation Office (SFIO). The information submitted by the SFIO showed that the present management of the two companies had worked with fraudulent intent, breached stakeholders’ trust, persistently neglected its obligations and functions ‘to the serious detriment of the business and operations of these two companies and stakeholders’.

The Minister for Corporate Affairs, Mr Prem Chand Gupta, said “the application will now come up for hearing on February 24.

“The Government has moved CLB to remove the existing directors of these companies and to declare them as ineligible for appointment as directors in any other company.” In its application, the Government also sought to restrain all the current directors of these companies from alienating, mortgaging, creating charges or liens or interest in the properties, assets (owned/controlled) by them without the CLB’s permission.

Sources told Business Line that the two companies together have about eight directors. “The present management will be operational till the CLB takes a final view after hearing the plea on February 24,” sources added.

As of today, the board of Maytas Infra comprises Dr R. P. Raju (Independent director), Mr B. Teja Raju (Vice- Chairman and son of Mr B. Ramalinga Raju), and Mr B. Narasimha Rao (who was inducted on January 30, 2009). It may be recalled Mr C. S. Bansal, a whole-time director, had quit the company recently.

Asked whether the Satyam case could be referred to a joint parliamentary committee (JPC), Mr Gupta said, “there is no need for a JPC, at present.

More Stories on : Real Estate & Construction | Politics | Corporate Governance | Satyam Computer Services Ltd

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