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Rediff News  All News  » Business » Satyam 'ghost' haunts Maytas

Satyam 'ghost' haunts Maytas

July 16, 2009 15:34 IST
The fact it is promoted by kin of disgraced Satyam founder Ramalinga Raju is continuing to haunt Maytas Infrastructure, although it has a healthy order book of Rs 8,000 crore (Rs 80 billion) and is no longer run on a day to day basis by Teja Raju.

"We feel pained by the continuous equation of Maytas with Satyam, though they are two different legal entities. The only association is that it is promoted by Raju's son Teja Raju," a senior official of the firm told PTI, but did not wish to be identified.

Teja Raju who is still the vice-chairman of the company does not look after the day to day activities. The company is run by the executives. Major decisions of strategic nature has to be cleared by the government-nominated independent directors, the official said.

The infrastructure firm was this month stripped of the Rs 12,000 crore (Rs 120billion) Hyderabad Metro Rail Project after it failed to tie-up funds.

The official said the company still has an order book of Rs 8,000 crore. "These projects should be executed in the next three years," he added.

None of the orders that were cancelled were on the grounds of performance. They went because the company was facing a cash-crunch. However, things have started improving now.

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