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Maytas Infra has won Rs.1.1-billion (Rs.110-crore) contract from Southern Railway on January 6. While informing about the newly conferred contract, Maytas said that the company has been given the task of doubling the broad gauge track between Chengalpattu and Villupuram, two districts in Tamil Nadu. The company has to finish the project within 18 months. Maytas Infra chief financial officer V.V. Rama Raju said that after the completion of the project, it will help the Southern Railway in easing the traffic flow between Chengalpattu and Villupuram.
The Hyderabad-based Infrastructure development company, Maytas Infra was recently involved in a major controversy over its acquisition by Satyam Computer. Satyam was supposed to buy Maytas Properties and Maytas Infra but later called off its acquisition offer following strong protest from investors and analysts. The protesters were agitated at the top management’s decision to bail out the cash-strapped infrastructure firms. Maytas Properties and Maytas Infra are run by Satyam founder-chairman B. Ramalinga Raju’s sons - Rama Raju and Teja Raju.
The controversy has resulted in the resignations of many of the board members of Satyam including ISB Dean Mendu Rammohan Rao. Mr Rao has also withdrawn from RBI and SEBI selection panels. Securities and Exchange Board of India (SEBI) has ordered an enquiry into the whole deal to find if corporate governance norms were violated.
