IL&FS to take over Maytas Properties; ‘end Satyam saga’
14 Jan 2011
The Company Law Board (CLB) today mandated infrastructure finance company IL&FS to take over Maytas Properties, a company promoted by the family members of disgraced Satyam Computer Services founder Ramalinga Raju.
IL&FS has been allowed to hold 80 per cent of the equity in Maytas Properties, and will pump Rs150 crore into the crisis-ridden company over the next 18 months to turn it around, corporate affairs minister Salman Khurshid told reporters in New Delhi.
''I permit the induction of four nominees of IL&FS group as director on the board of Maytas Properties including the chairman,'' CLB chairman justice D R Deshmukh said in the order.
He further said that existing directors of Maytas Properties - Rama Raju, D Gopal Krishnana Raju and D Venkata Satya Raju - would resign immediately on induction of IL&FS group as the strategic investor in Maytas Properties.
According to the CLB order, IL&FS will be required to hold at least 40 per cent equity in the property company for next three years.
In order to allow IL&FS to take over the company, the paid up capital of Maytas Properties would be raised from Rs5 lakh to Rs25 lakh.