Maytas suggests CLB-appointed director on company's board

24 Feb 2009, PTI

NEW DELHI: Maytas Properties, facing a takeover by the government, on Tuesday suggested that the Company Law Board should appoint a director on its board or put an observer, who would report directly to the quasi-judicial body.

During the proceedings before the CLB, Senior Advocate Mukul Rohatagi appearing for the company submitted, "The CLB should put an observer on the Maytas board, who would report to you, or appoint a director in the company."

But the deputy director appearing for the government opposed it and requested the CLB to direct to take over the board of the company, run by B Rama Raju, son of scam-tainted Ramalinga Raju of the Satyam Computer Services.

Raising suspicion over Satyam Computer's Rs 6,400-crore proposal to acquire Maytas, based on the valuation by audit firm Ernst & Young, the government said there was a clear nexus between father and son.

The accounting and audit firm E&Y had valued Maytas Properties at Rs 6,523 crore.

"How hollow this valuation is... As per our knowledge, the company does not have any land bank and this company, having a turnover of a mere Rs 22 crore, was valued at Rs 6,523 crore," submitted the government.