Government asks Company Law Board to remove Maytas directors

Monday, February 16, 2009

NEW DELHI - The government Tuesday moved the Company Law Board to remove the board of directors of Maytas Infrastructure and Maytas Properties, the two infrastructure firms promoted by the family of B. Ramalinga Raju, the disgraced founder of Satyam Computer Services.

Corporate Affairs Minister Prem Chand Gupta said the government had found evidence that the two companies were involved in money laundering, fraudulent accounts and diversion of funds.

The government move comes after the anti-fraud cell, Serious Fraud Investigation Office (SFIO), was asked to probe the links between Satyam and the two Maytas companies.

Ramalinga Raju, his brother B. Rama Raju, Satyam’s former chief financial officer Vadlamani Srinivas and two former auditors are now in prison in connection with the Rs.78-billion (Rs.7,800 crore/$1.43 billion) accounting fraud.

Maytas Properties chief executive K. Thiagarajan had resigned Feb 15 reportedly on health grounds.

Most of the Maytas Infra board had already resigned in January, with the CEO P.K. Madhav putting in his paper Jan 14.

Reacting to the government’s move, Deepak Parekh, a member of the government-appointed board of Satyam, said it was a ‘move in the right direction’.

‘Hope that we are not appointed to Maytas’s firm. Our hands are already full,’ he said.

Filed under: India, Satyam

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