Maytas’ legal notice to Vedanta for encashing bank guarantees
By IANSWednesday, February 4, 2009
HYDERABAD - Maytas Infra, owned by former chairman of Satyam Computer Services B. Ramalinga Raju’s family, has issued a legal notice to Vendanta Aluminum Ltd for ‘fraudulently and illegally’ encashing two bank guarantees worth Rs.640 million (Rs.64 crore) and for not clearing admitted dues.
Maytas claimed that Vedanta breached the contract by encashing the bank guarantees Jan 20 without even terminating the contract for constructing the Rs.2.32-billion township in Jharsuguda in Orissa.
The bank guarantees were produced by Maytas towards the contract May 7, 2008.
‘The bank guarantee can be invoked only if the company provides a termination contract or establishes breach of terms and conditions,’ said a statement by the Hyderabad-based infrastructure company.
It also said Vedanta has not paid Rs.290 million towards the bills submitted by Maytas for the last two months.
Maytas Infra has served a statutory legal notice of company winding-up to Vedanta Aluminium under the Companies Act for non-settlement of the admitted dues, and is in the process of filing company winding-up petition before the Mumbai High Court.
The project is to be completed by December, 2009. Maytas had already completed work amounting to Rs.350 million, and work is in progress for another Rs.100 million after mobilising men, machineries, plant and equipment worth Rs.300 million, it said.
Maytas also alleged that Vedanta, in collusion with the local elements, illegally confined its employees at their Jharsuguda site.
‘It’s a clear case of Vedanta taking advantage of the situation that Maytas Infra is currently in. Armed with money that lawfully belongs to Maytas Infra, Vendanta is in talks with other local contractors to complete its project,’ said Sudheer Mareddi, vice-president (buildings and structures), Maytas.
Maytas in recent days lost several projects in Orissa, West Bengal and other states as the massive fraud in Satyam Computer Services had its impact on the company.
Ramalinga Raju, who confessed to a Rs.70-billion accounting fraud in Satyam, is in jail. He allegedly diverted Satyam funds to the companies promoted by his family members but Maytas, run by his son B. Teja Raju, has denied this.
