New Delhi (PTI): The Company Law Board on Friday said it would appoint four independent directors on the board of Maytas Infra including its Chairman.
"I would appoint four persons on the board of the company (Maytas Infra) that I have in mind. Out of that four, one would be appointed as Chairman. Let the appointed board take its course," said CLB Chairman S. Balasubramanian while reserving his order over government's plea to supersede the board of the company.
This was also accepted by the counsels representing the Maytas Infra. The company has proposed strength of nine directors on its board, including four independent directors.
During the proceeding, the Maytas counsel suggested some names for the post of independent directors which included names of some former CLB chairmen and members, and former MRTPC members.
The board, however, immediately rejected it and returned the list of the names to Maytas counsels.
Meanwhile, creditors IDBI and ICICI Banks and IL&FS, which have 37.01 per cent shares of Maytas, today submitted that they do not want any representation on the company's board. They further requested CLB to appoint persons expert in their field on the Maytas board.
However, the banks pleaded that the present directors of the company should refrain from participating in the board meeting "in greater public interest".
"...For four weeks, their representatives should not vote on any proposal. No one would take a penny from the company. This is in the greater public interest of the company having 34 big projects.
"We would not even seek representation in the company. Future is to be seen. Let there be an immediate appointment of independent directors of the company...before everything would go in dust," pleaded counsel for the creditors Dushyant Dave.
However, this was opposed by the counsels of the Maytas Properties saying that it would amount to indirectly superseding the board.
The government on Friday once again opposed the proposal of appointment of independent directors and requested the board to allow its prayer to supersede Maytas Infra board.
"The central government has no faith in the present management of the company. They themselves are denying any fraud in the company and now deciding who should be appointed on the board of the company," submitted a deputy director appearing on behalf of the company.
He further submitted that the company has projects worth Rs 6,800 crore and debt around Rs 1,270 crore.
"It has big projects like Hyderabad Metro Project. If the company fails, then it would have impact...project would be delayed by 10 years and company would be flooded with litigations," he submitted.
However, the CLB Chairman on Friday again said that he was against superseding Maytas Board at this stage and asked the government to furnish evidence supporting their allegation.
"You want to supersede at this stage, I disagree... Show me the material evidence. I want to see it before taking any decision. I have to follow principles of law and cannot go merely on allegations.
"Tell me incidences, how company is suffering? How they are not discharging their duties? How it has affected the public interest...," said the CLB Chairman after the government repeatedly failed to present material evidences supporting allegations against Maytas Infra.
"You are at an interim stage...investigations are going on. Bring more material evidence based on that," he said. The CLB also declined request by IDBI and ICICI Banks to pass a status quo order on the contracts and projects of the company.
"No...the new board would take care of it. I am not concerned," said CLB Chairman.
The CLB order is expected to be delivered early next week.
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