HYDERABAD: Infrastructure Leasing & Financial Services Ltd (IL&FS) on Thursday acquired the crisis-hit Maytas Properties Ltd (MPL), a real estate venture promoted by B Rama Raju Jr, son of disgraced Satyam Computer Services founder B Ramalinga Raju.
The Company Law Board (CLB) allowed IL&FS to take over management control and hold 80 per cent equity in MPL.
“I permit the induction of four nominees of IL&FS Group as directors on the board of Maytas Properties including the Chairman,” CLB chairman Justice D R Deshmukh said in an order. IL&FS also owns Maytas Infrastructure Ltd now rebranded as IL&FS Engineering & Construction Company. It also inducted Saudi Bin-Ladin Group as co-promoter.
Salman Khurshid, Minister for Corporate Affairs said IL&FS will invest Rs150 crore in MPL over the next 18 months.
The new arrangement, the Minister said, was also acceptable to the Raju family which will continue to hold 20 per cent equity in the company as long as they want. IL&FS will take 80 per cent equity in the company.
The firm’s existing directors namely - B Rama Raju, D Gopal Krishna Raju and D Venkata Satya Raju - will step down from the board following the induction of IL&FS. Governmentappointed Ved Jain will continue as director until January, 2015.
The CLB order stated that IL&FS will have to hold atleast 40 per cent equity in the property company for next three years i.e., until January, 2015. It also madated IL&FS has to complete phase-I of MPL’s flagship Rs 1,100 crore Hill County Project in next 18 months. The residential- cum-commercial project includes 840 apartments and 326 independent villas ranging from Rs 50 lakh to Rs 150 lakh for flats and Rs 150 lakh to Rs 250 lakh for villas. Besides, IL&FS is also entitled to recover the Inter Corporate Deposits (ICDs) from Mahindra Satyam.
The real estate arm of Maytas was shredded to pieces following the Satyam accouting scandal in January, 2009. Though the CLB scrapped the existing board and appointed government nominees, it took more than two years to rope in a strategic partner.
