Andhra HC stays Rs 120-cr project award to Maytas

The Andhra Pradesh High Court today stayed awarding of a Rs 120-crore road project to Maytas Infra, promoted by Satyam Computers' Ramalinga Raju and family, on nomination basis.
     
A division bench of the High Court comprising Chief Justice Anil Ramesh Dave and Justice Ramesh Ranganathan issued the stay order on a writ petition filed by one Narayana Reddy, a resident of Kudumanchipalli village in Kadapa district.
     
Ironically, the state Cabinet that met today under the chairmanship of Chief Minister Y S Rajasekhara Reddy "ratified" the awarding of the road work to Maytas around the same time the High Court delivered its order.
     
Information minister Aanam Ramanarayana Reddy and energy minister Md Ali Shabbir later announced the Cabinet decision to reporters here. When pointed out that the High Court stayed the project, the ministers said the government would abide by the court's order.
      
It may be recalled that the state government awarded the Rs 120-crore project on nomination basis to Maytas Infra that was also executing the Gandikota reservoir project in the Chief Minister's native Kadapa district without inviting any tenders, which caused a major political stir with opposition parties strongly denouncing the government move.