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The associate firm of beleaguered Satyam Computer, Maytas Infra has registered a criminal case against Vedanta Aluminium Ltd (VAL) and eight of its employees. Maytas filed the case against Vedanta on charges of fraudulently encashing the bank guarantees without ending the contract between them. According to the provisions of the contract between the two companies, Maytas Infra was supposed to build a township project at Jharsuguda in Orissa for Vedanta Aluminium within 18 months. The contract expires on March 23, 2010.
The Hyderabad-based construction firm alleged that Vedanta has fraudulently encashed the bank guarantees of Rs.470 crore without terminating the Rs.2.32-billion township contract. The case has been registered in city criminal court at Hyderabad for criminal breach of trust, cheating and criminal conspiracy. Maytas claimed that it had provided the bank guarantees from various banks including ICICI, Axis and IDBI as performances guarantees for Vedanta's township project.
The Hyderabad court has referred the case to the police to take appropriate action. Maytas puts an accusing finger on Vedanta by saying that it is trying to take advantage of the situation that surfaced due to the Rs.70-billion Satyam scam. The associate firm of Satyam accused Vedanta of non-payment of admitted dues and non-settlement of commercial issues. The million-dollar Satyam fraud badly affected Maytas Infra, which is run by disgraced B Ramalinga Raju's son. The infrastructure firm has lost many projects in states of Orissa and West Bengal due to the outbreak of scam.
