MMTC opts out of JV with Maytas

The government-run trading firm MMTC today decided to withdraw from equity participation in a firm to be promoted by B Ramalinga Raju-linked Maytas Group for setting up a multi-services special economic zone (SEZ).

The decision to withdraw from participating in the special purpose vehicle (SPV), being promoted by the Matyas Group, was taken by the MMTC board here.

"In view of the recent developments related to Satyam Computer Services... The board of directors of MMTC at its meeting today reconsidered the investment proposal and decided to withdraw MMTC's participation in the equity of the proposed special purpose vehilce being created by Maytas Group for setting up a multi-services SEZ," MMTC said.

MMTC was in the process of receiving shareholders' approval for investing Rs 85.85 crore and picking up up to five per cent stake in the Maytas Group's SPV for the SEZ.

The $5-billion trading major, under the administrative control of the Commerce Ministry, has also withdrawn the postal ballot it had sent on December 19 for seeking shareholders' approval for the proposal to join hands with the infrastructure group promoted by Ramalinga Raju's family.