Thursday, February 26, 2009

Mauritius firm wants Indian firm Maytas to clear dues

New Delhi, Feb. 25-The Telegraph

Mauritius-based investor SRS Orion has demanded Rs 806 crore from troubled Maytas Properties, the real estate firm promoted by a kin of B. Ramalinga Raju.

SRS Orion has reportedly invested Rs 600 crore in Maytas Properties. It has already issued a public notice demanding Rs 806 crore by March 19, 2009, the Mauritius firm said in its petition filed before the company law board (CLB).

The investment firm has sought to convert its compulsory convertible debentures in Maytas Properties into shares and wants to appoint directors.

It has also urged the CLB to make it a party while superseding the board of Maytas and replacing it with government nominees.

SRS Orion wants its dues to be paid after the sale of assets of the company.

Auditing firm Ernst & Young today said it had started work on evaluating Maytas Properties even before signing a formal engagement letter and the process was “much longer” than just one day.

E&Y said it followed the standard industry practice for property companies to be valued on the basis of their land bank and development rights and it did not overvalue Maytas.

Yesterday, the government counsel had alleged before the CLB that E&Y had valued Maytas at Rs 6,523 crore against its turnover of mere Rs 22 crore. The counsel said the valuation was done in a day.

House ruckus

Opposition members walked out of the Lok Sabha today, dissatisfied with corporate affairs minister Prem Chand Gupta’s assurance that investigating agencies were working on a war-footing to unravel the Satyam scam. The members wanted to know why the regulators had failed to detect the fraud which was going on for several years.