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Stalled projects of Maytas Property may finally see the light of day, as new promoters IL&FS (Infrastructure Leasing and Financial Services) take over the reigns of the company. This follows a Company Law Board (CLB) judgment here today.
“In what can be seen as an end to the Satyam saga, the CLB has chosen IL&FS, which also manages the sister concern Maytas Infrastructure as the new promoters of Maytas Property,” said Mr Salman Khurshid, Minister for Corporate Affairs, at a press conference.
IL&FS will hold 80 per cent of the equity capital by infusing Rs 20 lakh as equity share capital, taking the paid-up capital of the company to Rs 25 lakh. The rest 20 per cent of the equity will be retained by the family of Mr Ramalinga Raju, Mr Khurshid said.
Frozen projects
Under the capital restructuring proposal, the IL&FS Group will have to mobilise Rs 150 crore within three months for the frozen projects of Maytas Property, such as Maytas Hill County Residential Project. The first phase of the Hill County project will have to be completed within 18 months, said Mr Khurshid.
IL&FS will have to settle all disputes, tax liabilities, contractual dues and other creditors of the company. IL&FS will continue to hold minimum of 40 per cent of the total equity and be in the management control of the company for a period of three years. The Board of Directors would be reconstituted by appointing four IL&FS nominees including a Chairman. The existing promoter directors, Mr Rama Raju, Mr D. Gopal Krishnana Raju and Mr D. Venkata Satya Raju would step down and make way for the company to induct new members if it so wishes.
“The family is willingly stepping down and the Government's nominee Mr Ved Jain will continue to be on the board for the next two years. Meanwhile, the company will function on its own and can do what they like,” said Mr Khurshid.
GVK Group was also in the fray for a stake in Maytas. IL&FS was chosen as the strategic investor after whetting by SBI Capital Markets Ltd and a Retired Supreme Court judge, Mr Justice A.R. Lakshmanan.
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