Valued Maytas for Raju family, not for Satyam: E&Y | india | Hindustan Times
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Valued Maytas for Raju family, not for Satyam: E&Y

Auditing major Ernst & Young said its valuation of controversial Maytas Properties was for a deal involving existing shareholders of the firm, but declined to comment on whether its report was misused by scam-tainted Satyam Computer.

india Updated: Jan 26, 2009 05:54 IST

Auditing major Ernst & Young on Sunday said its valuation of controversial Maytas Properties was for a deal involving existing shareholders of the firm, but declined to comment on whether its report was misused by scam-tainted Satyam Computer.

"We were not given to understand by any party, explicitly or implicitly, during the valuation exercise, about Satyam's plans to acquire Maytas Properties," an E&Y spokesperson said.

Asked if the valuation, which it said was done in an "unrelated context" was misused by Satyam, also founded by Raju, and if E&Y would take any action against the IT firm, the spokesperson said "no comments".

The decision to acquire his family-promoted Maytas Properties and Maytas Infra, whose statutory auditor is also E&Y, proved to be the nemesis of Raju, who was arrested early this month after he disclosed a Rs 7,800-crore fraud.

"Ernst & Young was engaged by a law firm to undertake a valuation of Maytas Properties, as required under the guidelines of the Reserve Bank of India, for a proposed share transaction involving existing shareholders of Maytas Properties Ltd," the spokesperson said.