HYDERABAD: Infrastructure Leasing & Financial Services Ltd (IL&FS), promoter of Maytas Infrastructure Ltd, acquired Maytas Properties Ltd (MPL) primarily to recover about Rs 150 crore from the real estate firm, according to company officials.
Sources said Maytas Infra, rebranded as IL&FS Engineering & Construction Company, was the contractor for the Rs 1,100 crore Maytas Hill County project and as a result owes about Rs 150 crore to the infrastructure firm, thus prompting IL&FS to acquire the crisis-hit MPL.
“By virtue of being a contractor for the Hill County project, we have to get about Rs 150 crore from the company. The primary reason for acquiring MPL was to recover this money after completion of the project,” a senior company official told Express.
The CLB ordered IL&FS to take over management control in MPL and hold 80 per cent equity, of which 40 per cent should be locked until 2015. It allowed IL&FS to induct four directors on the board besides mandating the company to complete the first phase of Hill County project over the next 18 months.
Besides, IL&FS was also allowed to recover the Rs 220-crore ICDs from MSat. “We have documentary evidence showing the money trail. Now, all we have to do is to find a procedural means of recovering the money,” he said.
Sources said IL&FS will hold a board meeting next month to draw an action-plan to revive the company.