The Mahindras played the knights in shining armour to rescue fraud-hit Satyam. For its beleaguered sister firm Maytas Infrastructure, IL&FS is stepping in for a similar role in a similar government-led salvage operation.
The infrastructure major will replace the B. Ramalinga Raju family as promoters of Maytas and infuse Rs. 55 crore to revive it. “IL&FS will be the new promoter of the Maytas Infra”, Corporate Affairs Minister Salman Khurshid announced.
IL&FS, which is the single largest shareholder of Maytas, will control 37 per cent of equity in Maytas as some other large shareholders will pledge their shares with it, Khurshid told reporters on Monday, but he did not set any time-frame for revival. The Company Law Board (CLB) passed an order to effect the government-led action on Monday. Teja Raju, the son of Ramlinga Raju, who confessed to doctoring accounts in Satyam, will quit as promoter-director of Maytas, which is believed by critics to have gained from funds taken out of Satyam or from the political influence wielded by the family that ran both firms.
Khurshid said two of the four government nominees on the Maytas board would step down. The government is yet to decide on who will step down.