Maharashtra cancels Rs 480 cr Maytas deal

Chief Minister Ashok Chavan directed state power distribution company, Mahavitaran, to cancel a contract worth Rs 480 crore that was awarded to Maytas Infrastructure, and to call for fresh bids.
 
Maytas Infrastructure is the sister concern of IT firm Satyam Computer, whose former chairman B Ramalingum Raju  has confessed to committing a fraud of more than Rs 7,000 crore.
 
Maytas was awarded the contract of Rs 480 crore for commissioning of sub stations, and transmission and distribution lines in Ahmadnagar, Beed and Latur districts of the state in September last year.
 
Replying to query during a press conference, Chavan said after the fraud committed by Raju came to light and a connection between Satyam and Maytas became evident, he ordered  Mahavitaran to cancel the contract and start the bidding process afresh.
 
Justifying the decision to give land to Satyam at a concessional rate in MIHAN SEZ promoted by the state government's Maharashtra Airport Development Company (MADC)  in Nagpur, Chavan said,  "Whenever any new industrial park or SEZ is developed, anchor tenant is given land at concessional rate to attract further investments, so there is nothing wrong with it".
 
Responding to another question, he said,  it is fact that MADC's chairman R C Sinha was also chairman of another Satyam group firm Maytas Properties, and after fraud came to light Sinha immediately stepped down as the chairman of that company. However there is no information or prima facie evidence found yet about Satyam or any other companies promoted by the Rajus being favour by Sinha or the MADC.