Maytas moves CLB on induction of SBG nominees as directors

IL&FS-owned Maytas Infra today approached the Company Law Board (CLB) for the second time in three months seeking approval to appoint four nominees of the Saudi Bin Ladin Group (SBG) as its directors.

Earlier in August, CLB had rejected Maytas Infra's request for inducting four nominees of of Saudi Arabia-based real estate company SBG on its board.

Maytas Infra submitted that it has obtained the necessary consent of the government of India before filing the present application.

"With the consent of government of India, the company has applied to the CLB requesting for its approval to appoint nominees of the SBG as Directors of MIL," IL&FS said.

CLB Chairman Justice Dilip Raosaheb Deshmukh posted the matter for next week for further hearing with the observation that the affidavit filed by the government should have been in detail rather than concise.

"The affidavit filed by the government should not be concise, it should be in detail," the CLB said.

IL&FS in August last year took over the cash-strapped Maytas Infra, once promoted by the kin of disgraced Satyam founder B Ramalinga Raju, following a CLB order. As per the takeover rules, the company has to seek CLB's approval before effecting any change in management control before September- October 2011.

In a filing to exchanges in June this year, Maytas Infra had announced that SBG will acquire stake on a preferential basis. Shareholders of Maytas Infra had also approved the proposal in an extraordinary general meeting on July 19.

Following the stake sale, SBG would become a co-promoter of the company.

Maytas had said the induction of four directors was thought necessary as SBG, apart from providing a FDI of Rs 301 crore, has also entered into an explicit understanding with the company to provide infrastructure orders worth $1.50 billion over the next three years.

Maytas Infra was in the eye of a storm after a failed bid by Satyam Computer to acquire the company in December 2008. Maytas subsequently suffered a severe cash-crunch.