Lenders decline seat on Maytas Infra board

Three financial institutions — IDBI Bank, ICICI Bank and IL&FS Ltd — that have lent money to Maytas Infra today informed the Company Law Board (CLB) that they are not interested in board membership in the Hyderabad-based firm.

Legal counsels representing the three FIs informed the CLB, which is hearing a government petition for taking over the Maytas Infra board, they are in favour of the government appointing a majority of independent directors.

Maytas Infra is a listed company that is managed by B Teja Raju, the older son of Satyam Computer founder Ramalinga Raju, who confessed to fudging Satyam’s accounts in January.

The CLB today, meanwhile, reserved its interim order on the government’s petition for superseding the Maytas Infra board — CLB Chairman Balasubramanian said he would not allow it — but suggested four independent directors be inducted and a chairman chosen from among them. The board only has three directors left on it.

Maytas Infra’s advocate, however, argued that there was no proof of board mismanagement. The premise of the government’s petition is that the promoter is a blood relative of Ramalinga Raju, which doesn’t make it a strong case, he added.

Maytas Infra is working on infrastructure projects, including central and state government projects, worth over Rs 6,800 crore, the counsel said.

The government application to take over Maytas Properties — the other Satyam promoter-linked firm — will come for hearing on Monday and an interim order is likely next week.