Maytas Hill Projects' customers to get respite from board

Mar 28, 2009
Over 600 worried customers who bought flats and villas in the Maytas Hill County projects finally got some respite. Ved Jain––the government nominated Director of Maytas Properties––assured them that he will protect their interest. CNBC-TV18’s Vishwanath Pilla reports on what Ved Jain is proposing.

Also read: Maytas seeks extension of financial closure deadline

The government nominated Board Director Ved Jain met the customers of the Maytas Hill County Project and tried to ally the fears of over 600 customers. Maytas Hill County Project is a flagship real estate project promoted by Ramalinga Raju’s family’s real estate company––Maytas Properties. The Maytas Hill County Phase I consisted of 350 villas and 1,150 apartments.

It is known that after Raju’s confession all the construction activity got startled. So most of the customers paid to the tune of 90% of the money and they are yet to receive their flats and villas. Most of the customers got worried and they have represented their case before the Company Law Board. The Company Law Board appointed Ved Jain to take care of customers interest and Ved Jain proposed an escrow account which enables the customers to put in all the remaining receivables, which we learn are to the tune of Rs 104 crore that will enable the company to use that money only for the completion of the project. Ved Jain has also proposed a grievance committee and a project monitoring company to ensure that the project continues.

Ramalinga Raju was also there at that meet, told that the company still needs Rs 580 crore to complete the project and he also told that the company is still going ahead with its IT SEZ in the Maytas Hill County premises. He said that the company has already invested, already invested Rs 100 crore on it and it is perusing that project. On the whole Mr Ved jain tried to allay the fears but a lot of customers are still apprehensive. They want back their money and their confidence got eroded after Raju’s confession.