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Fresh irregularities revealed on Maytas Infra

Glaring fresh irregularities have come to light in the functioning of Maytas Infra with the company learnt to have furnished inconsistent information in one its construction joint ventures — SSJV Projects Pvt Ltd.

business Updated: Mar 29, 2009 20:36 IST

Glaring fresh irregularities have come to light in the functioning of Maytas Infra with the company learnt to have furnished inconsistent information in one its construction joint ventures — SSJV Projects Pvt Ltd.

These irregularities have worried the top management of India's largest power company, NTPC, which had awarded a critical construction component of its Rs 3,500 crore Tapovan Vishnugad hydro-power project in Uttarakhand to the joint venture of SSJV and a Russian company, ZRV.

More so, NTPC has informed its board that SSJV Projects has run out of resources and is heavily dependent on cash advances and payments by NTPC to execute the portion of the project.

The power major is now worried and has quoted an HT report before its Board that the SSJV could well be under the scanner of the Serious Frauds Investigations Office (SFIO), which is investigating the accounts and transactions of 356 entities believed to be involved in companies promoted by the Raju family.

SSJV Projects was incorporated in 2002, with Manohar Shetty and B Rama Raju, brother of disgraced former chairman of Satyam Computer Services, B. Ramalinga Raju, as founder promoters and first directors of the company.

However, in the annual reports of SSJV Projects for financial years 2002-03 to 2005-06, the name of B Teja Raju ( Ramalinga Raju's son) has been appearing as the Director along with Manohar Shetty.

There are no details available on the change in directorship from B Rama Raju to B Teja Raju. When contacted, BVR Raju, CFO of Maytas Infra, said he is not aware of development in the project.

The NTPC Board received a fresh set of documents on February 6, barely a month after the stunning revelations of B Ramalinga Raju, that showed various changes in directorship of the company which did not match with the information given by SSJV Projects while submitting its bid for the Rs 400 crore contract.

The annual report of 2007-08 mentions VSN Raju (ex-company secretary of Satyam) as one of the two members of the SSJV Board. However, in a separate filing to the corporate affairs ministry, the company has said that he was appointed as a director only in August 2008.

Further, it was only in these set of new documents that NTPC came to know that Maytas Infra transferred its 50 per cent holding in SSJV to three unknown entities —Dronagiri Agro Farms, Mandaragiri Green Fields, and Ghataprabha Agro Farms.

“It is also not clear if these companies are held by Maytas or by the family members of Raju,” NTPC officials said.