Maytas fraud to be probed 19th Jan News

January 20th, 2009
Jan. 19: The Centre has extended its ongoing probe into the Satyam fraud to cover Maytas Infra and Maytas Properties promoted by the family of Mr B. Ramalinga Raju.
The development came af-ter investigators in Hydera-bad reported that the Maytas firms had got hundreds of crores of rupees from a Ma-uritius-based entity, and that it was suspected that Saty-am funds were used to fina-nce Maytas land purchases.
“The government has approved and authorised the SFIO (Serious Fraud Invest-igation Office) inspectors to obtain such books, records, papers as they deem necessary from Maytas Properties and Maytas Infra,” the corporate affairs minister, Mr Prem Chand Gupta, told reporters in Delhi.
The SFIO investigation will cover all aspects whet-her they are directors, board members, banks, creditors, debtors and “whenever they (investigators) feel there is doubt in their mind, they can always expand (scope of probe) it.” The investigations have been called under Section 235 and 237 of Companies Act.
Meanwhile, Mr P.K. Mad-hav, the chief executive off-icer of Maytas Infra, resig-ned on Monday. He is alre-ady facing charges in a case relating to defaulting of payments by Nagarjuna Finance, where he was previously employed.
The minister said, “inspectors investigating the matters relating to Satyam have informed about the apparent nexus between the events that have taken place in Satyam and Maytas Prope-rties and Maytas Infra.”
On whether the government would supercede the board of Maytas Infra — Maytas Properties is a privately held firm — Mr Gupta said, “whatever is required, government would definitely look into that.”
The SFIO has already found that there is huge flow of funds, estimated at hundreds of crores of rupees, from a Mauritius-based firm into Maytas Infra. They are now in the process of tracking how the funds moved.
SFIO officials inspected the account books and documents of eight companies including Maytas Infra and Maytas Properties which are owned by Mr Raju and his family.

An official of SFIO said, “Our report says that it is suspected Satyam money was diverted to purchase land for Maytas companies.
The six other companies are not of much interest for us. They are either merged or taken over by Satyam.
SFIO sources said hundreds of crores of money has been pumped into Maytas from Mauritius.
Meanwhile, sleuths of Enforcement Directorate and Directorate of Revenue Intelligence sleuths met Registrar of Companies and sought details on the Satyam case.
Sleuths are also looking into hawala angle in the entire episode.