IL&FS new promoter of Maytas Properties

Infrastructure leasing company IL&FS will take over the crisis-ridden Maytas Properties and pump in Rs 150 crore to revive the company promoted by the kins of disgraced Satyam founder B Ramalinga Raju.

IL&FS, which has already taken over Maytas Infra, another company promoted by the kin of Raju, will take 80 per cent equity in the company, Corporate Affairs Minister Salman Khurshid said while briefing reporters about the Company Law Board (CLB) order.

The new promoters will inject Rs 150 crore in Maytas Properties over three months to revive the company, which is facing bad times following the arrest of Raju who had admitted to fudging of accounts of Satyam Computer Services (now Mahindra Satyam).

The trouble in Satyam started in 2008 after the its board rejected the proposal of promoters to buy Maytas Infra and Maytas Properties.

"I hope that this can be seen as the end of the saga of Satyam," Khurshid said while welcoming the order.

Satyam Computer had been taken over by the Mahindra Group.

Besides IL&FS, infrastructure company GVK Group had also expressed interest in taking over the company, he said, adding although expressions of interest was sought from 28 companies, only nine responded.

Of the nine, IL&FS and GVK Group submitted their proposals. SBI Capital Market was the adviser for the deal.

Maytas Properties, a real estate company, was engaged in developing residential properties in and around Hyderabad.

It promoted Maytas Hill County project in which several non-resident Indians had booked luxury flats and villas.

The new promoters, according to the CLB order, will have to complete phase-I of the Hill County project in one-and-a-half years.

"It was important for us, because every year when Pravasi Bhartiya Divas takes place, they (NRIs) repeatedly keep asking us about Maytas Hill county projects. So, we were concerned and finally a solution has been found," Khurshid said.

The new arrangement, the Minister said, was also acceptable to the Raju family which will continue to hold 20 per cent equity in the company as long as they want.

The board of Maytas Properties would be reconstituted as the new promoter has been allowed by the CLB to induct four nominees replacing representatives of Raju family.

"The IL&FS group on its induction as the strategic investor shall take over the management control of the Maytas Properties and reconstitute the board of directors of the Maytas Properties," said CLB Chairman Justice D R Deshmukh in his order.