Malaysian firm denies land dealings with Satyam

A leading Malaysian company has refuted allegations of improper land dealings with scandal-hit Satyam Computer Services Group and has extended its cooperation to the Indian authorities.

IJM Corp Bhd denied that the company, its CEO Krishnan Tan or director in charge of operations in India Ng Chin Meng had land dealings with Satyam or Maytas Infra Ltd in their personal capacity or on behalf of the company.

"The company will extend its full cooperation to the Indian Tax Authorities, if needed," IJM Corp in a statement to the Malaysian stock exchange.

The company's denial came after an Indian business daily reported that Ng was on a list of 30 individuals who were being investigated by Indian Tax Authorities in relation to the Satyam fraud case.

IJM's unit in India, IJM (India) Infrastructure Ltd, got involved in business in the country in 1997-98 with co-investments in Gautami Power and two road projects.

Those projects were done in a joint venture with Satyam Constructions Ltd, now called Maytas Infra. It said the road projects were completed in 2001 and Maytas was a sub-contractor for another road project in Madhya Pradesh in 2003.

The company was originally incorporated in April 1998 by promoters related to Maytas and Satyam. But the promoters stake in IJM India was gradually reduced from an original 30 per cent to 0.85 per cent in March 2008 and, from 2003, the promoters linked to Maytas and Satyam did not have any board representation in IJM India, local media reports said today.

Maytas is currently a sub-contractor for IJM India in two road projects. IJM India said those jobs were at advanced stage and conducted on an arm's length basis, the reports stated.