Maytas shareholders 'forced' to transfer shares to finance companies

Maytas Infra Ltd, controlled by the family of arrested Satyam Computer Services chairman Ramalinga Raju, has said its biggest shareholders were forced to transfer their shares to finance companies to cover loans.

Raju's family and related companies offloaded a combined 20 per cent stake in Hyderabad-based Maytas, according to a filing by the company to the Bombay Stock Exchange on Wednesday. The transfers were ''a result of invocation of pledge,'' it said.

Maytas Infra's stock has fallen by the daily limit for two weeks since Raju admitted on January 7 that he had fabricated $1 billion in assets at Satyam. B Rama Raju, Elem Investments Pvt Ltd and Fincity Investments Pvt Ltd transferred shares to IFCI Ltd and Sicom Ltd, according to two separate filings.

Sicom and IFCI garnered control of 24.4 per cent of Maytas Infra shares. Elem and Fincity are among companies ''owned by or where significant influence is exercised by key management personnel or relatives'', according to Maytas Infra's annual report for the year ended March 31.

Meanwhile, Maharashtra chief minister Ashok Chavan has directed state power distribution company, Mahavitaran, to cancel a contract worth Rs480 crore that was awarded to Maytas Infrastructure, and to call for fresh bids.

Maytas was awarded the contract for commissioning sub-stations and transmission and distribution lines in Ahmadnagar, Beed and Latur districts of the state in September last year.