Maytas settles dispute with Vedanta, withdraws plea in SC

Maytas Infra today informed the Supreme Court that it has settled its dispute with Vedanta Aluminum and withdrew its petition against the UK-based company.

Counsels appearing for Maytas Infra, now IL&FS Engineering and Construction Company, informed a bench comprising Justice H S Bedi and Justice Chandramauli Prasad that the parties have amicably resolved their disputes.

The bench allowed Maytas Infra to withdraw its criminal petition against Vedanta Aluminum.

Maytas Infra had moved the apex court in April last year against Vedanta Aluminum, its high level officials including Chairman Anil Agarwal, alleging that the company had breached law by encashing bank guarantees given by it for the Rs 232- crore contract for construction of a township in Orissa.

Maytas, once promoted by kin of Satyam's disgraced founder B Ramalinga Raju, had approached the apex court after the Andhra Pradesh High Court quashed criminal proceedings against the Vedanta Aluminium.

The high court had also quashed an FIR registered by Maytas against Vedanta and its officials in Hyderabad.

According to Maytas, after signing the agreement, it was to complete the entire project in two stages in 18 months by September 2009. As per the terms and conditions, it handed over two bank guarantees of Rs 23 crore each to Vedanta group firm.

However, on January 7, 2009, the accounting scam in its parent firm Satyam Computer broke out.

"Sensing that the complainant (Maytas) could be in a delicate situation, accused (Vedanta) with dishonest and criminal intention, January 12, 2009 wrote complaining about imaginary delays on the part of Maytas," said Maytas.

Later, Vedanta Aluminum terminated the contract on grounds of delay and encashed the bank guarantees.

Maytas submitted that there was no delay from its side on completion of the project and "the accused (Vedanta) however, with the criminal intent to dishonestly enjoy wrongful gains, encashed the bank guarantees and have, thereby, inter alia committed an offence of criminal breach of trust."

It said that the Vedanta handed over the final revised drawings and master plan of the project only in September 2008 and as per the terms, the first phase was to be completed only by September 2009.