Jan. 27: The Company Law Board (CLB) on Thursday sought response from the Central government on a plea by SRS Orion Investment and JM Financial, questioning its revival plan for the scam hit Maytas Property whose 80 per cent shares were transferred to IL&FS for just Rs 20 lakhs.
Mauritius-based SRS Orion Investment and JM Financial have challenged the revival plan of Maytas Property, under which the government controlled board transferred the shares to IL&FS.
Admitting the plea, CLB chairman, Mr D.R. Deshmukh, issued notices to the Central government and IL&FS directing them to file their replies within four weeks. SRS Orion said that it had invested Rs 520 crore in Maytas Properties and claimed that the market value of the investment has gone up to about Rs 1,000 crore — a sharp contrast to the IL&FS’ paying just Rs 20 lakh for the stake.
On January 13, CLB allowed infrastructure finance company IL&FS to take over Maytas which was promoted by the family members of the disgraced Satyam Computer founder, Mr B. Ramalinga Raju, following a revival plan of government.
The senior counsel, Mr S. Ganesh, appearing for SRS Orion alleged that despite being an investor in Maytas Properties, it was not informed by the government prior to the decision of handing over 80 per cent shares to IL&FS.
“I was unable to understand why, under the revival plan, government has allotted 80 per cent share to IL&FS just for only Rs 20 lakh, but SRS Orion has not been informed about the same though it has invested Rs 520 crore in the company,” Mr Ganesh contended, adding that the investment company was not even handed over a copy of the revival plan.
He added that the decision to hand over the company to IL&FS was taken without considering the interest of SRS Orion.