BS Reporter / Chennai/ Hyderabad Nov 19, 2009, 00:58 IST
The Andhra Pradesh High Court on Wednesday quashed a petition filed against the chairman of Vedanta Aluminium Limited and eight others by Maytas Infra.
Maytas a few months ago had filed a petition in a criminal court alleging that Vedanta had invoked its bank guarantees. The court, in turn, asked the local police to register a case against Vedanta chairman Anil Agarwal and eight others.
Following this, Vedanta moved the High Court saying it had invoked the bank guarantees according to provisions.
In November 2007, an agreement was reached between Vedanta and Maytas Infra for constructing a township near the former’s plant at Jharsiguda in Orissa. Under the agreement, Maytas Infra had to construct the township at a cost of Rs 232 crore in a specified period. Maytas Infra furnished two bank guarantees worth Rs 46 crore as part of the agreement. Later, citing non-compliance to the provisions of the agreement, Vedanta invoked the bank guarantee.
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