The Andhra Pradesh high court posted the case of Maytas Infra Limited challenging the state government action of cancelling the Rs 12,132-crore Hyderabad metro rail project awarded to it for next week.
The state government, in its counter filed on Tuesday, defended its action of cancellation of the concessionaire agreement entered into with Maytas Infra, the listed company of the family of Satyam founder B Ramalinga Raju.
The government said that the agreement was cancelled as Maytas had failed to fulfil the conditions and fresh bids were called for execution of the project in public interest. It contended that it was in no way concerned with the financial fraud at Satyam Computers that affected the functioning of Maytas Infra.
On July 27, Maytas Infra director B Narasimha Rao filed a petition asking the high court to declare the action of the state government as illegal. "The government was unreasonable in terminating the contract given to it and that it had not taken into consideration the hindrances and hurdles that were beyond their control to achieve financial closure," he said in the petition.
Content Guide
