NEW DELHI -- The Indian government Tuesday said it has found possible fraud at Maytas Infra Ltd. and unlisted Maytas Properties Ltd., and that it has asked the country's Company Law Board to remove the two companies' directors.
"On the basis of the information available, the government finds a strong possibility that the affairs of Maytas Infra and Properties were conducted by its present management with fraudulent intent," Corporate Affairs Minister P.C. Gupta told reporters.
Both companies are controlled by the family of the founders of software exporter Satyam Computer Services Ltd., which is being probed for financial irregularities.
Mr. Gupta said that the government Tuesday asked the Company Law Board, or CLB, to nominate directors to the boards of the two companies.
The CLB -- an independent, quasi-judicial body -- will hear the matter Feb. 24., Mr. Gupta said.
Hyderabad-based Satyam was plunged into turmoil following revelations by founder B. Ramalinga Raju in early January that he had overstated profits over several years and created a fictitious cash balance of more than $1 billion.
Maytas Infra and Maytas Properties officials couldn't be immediately reached for comment.
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