Maytas denies receiving funds from Satyam

Maytas Infra denied it received any funds from scam-tainted Satyam Computer Services, and that there was a nexus between the two companies.

Maytas Infra on Tuesday denied it received any funds from scam-tainted Satyam Computer Services, and that there was a nexus between the two companies.

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The denial came a day after the central government extended the ambit of probe into Satyam fraud to Maytas Infra and Maytas Proprties, promoted by two sons of disgraced founder and former chairman of Satyam B. Ramalinga Raju, who admitted to a Rs 70-billion (Rs 7,000 crore/$1.43 billion) accounting fraud in the IT bellwether.

Minister for corporate affairs Prem Chand Gupta Monday said there appeared to be an apparent nexus between Satyam and the two companies, and announced that the Serious Fraud Investigation Office (SFIO) would also probe Maytas.

"Recent media reports have stated an apparent nexus between Satyam, Maytas Infra and others. Maytas Infra categorically states that there has been no receipt or utilisation of any funds belonging to Satyam, by diversion or otherwise," said a statement by Maytas in Hyderabad.

"We strongly refute this incorrect allegation against the company. Maytas Infra is in the business of implementing infrastructure projects on EPC, BOT and BOOT basis, and is not in the business of real estate and property development," it added.

The company also stated that it was fully co-operating with the investigations of the government agencies and the management was confident the company would be given a clean chit.

The Hyderabad-based infrastructure company is one of the two realty firms that are run by the two sons of Raju, who is the chief promoter with a 36 percent equity holding in Maytas Infra.

The aborted bid to acquire the two firms, Maytas Infra and Maytas Properties - for $1.6 billion (Rs.79.2 billion/Rs.7920 crore) by the fraud-tainted Satyam led to unprecedented crisis in the global software major, resulting in a spate of resignations by four directors and Raju subsequently.

The Andhra Pradesh government had awarded a number of infrastructure projects in the state to the tune of Rs.380 billion (Rs.38,000 crore). The projects include the prestigious Hyderabad Metro Rail and the Machhilipatnam deep water port in the coastal region.

Maytas, a reverse of Satyam, is also executing several packages in major irrigation projects worth Rs.14 billion (Rs.1,400 crore). Additionally, the infrastructure company is building three IT Special Economic Zones (SEZs) and integrated townships in Hyderabad.