Govt moves CLB to sack boards of Maytas firms

The government today moved the Company Law Board (CLB) to remove the current directors of Maytas Infra and Maytas Properties from their respective boards and declare them ineligible for appointment as directors of any other company. The CLB will take up the matter on February 24.

Both the Maytas (Satyam spelt backwards) firms are owned by relatives of Satyam Computer Services founder and former Chairman Ramalinga Raju, who admitted to Rs 7,800-crore financial fraud.

"We have approached the CLB to remove the directors of Maytas Infra and Maytas Properties from their respective boards," said Gupta.

The government, in order to prevent any harm to these two companies, has requested the CLB to restrain all current directors of these companies from acting as directors, from alienating, mortgaging, creating charges or liens or interest in the properties, assets owned and controlled by them without the leave of CLB.

The government has also asked the CLB to nominate government directors on the board of the two companies, informed Gupta.

"On the basis of information available, the government finds a strong possibility of the affairs of these two companies having been conducted by its current management with fraudulent intent, breach of trust to the stakeholders, and persistent neglect of the obligations and functions," added Gupta.