India News and Travel Times Provides India-centric and other News and Features

The Company Law Board (CLB) on Monday allowed the application of Maytas Infra Limited (MIL) to hand over the management of the company to Infrastructure Leasing and Financial Services Limited (IL and FS). Passing the Order in ht national capital, the Principal Bench of the CLB said that IL and FS shall be the new promoter of the company with immediate effect and that it shall appoint four of its nominees, including the Chairman, on the Board of Directors of the company; and will be in control of the management of the affairs of the company. The order further said that on appointment of these four directors, Teja Raju and B. Narsimharao shall submit their resignations as directors and shall thereafter cease to be directors of the company. At the choice of the Central Government, two of the four CLB nominees appointed by the Central Government shall continue as directors for a period of two years, the order states. The CLB has also asked IL and FS, which holds 14.5 per cent shares in Maytas, to foreclose its rights on the pledged shares of 22.6 per cent shares and thus to hold 37.1 per cent shares in the company. It also urged IL and FS to bring in up to Rs 55 crore as liquidity support to the company within a period of three months. The order also asks IL and FS to continue to hold a minimum of 26 per cent shares in the company for a period of not less than two years and to keep management control of the company during that period. Earlier the Board of Directors of MIL had held a meeting and accepted the offer of IL and FS to step in as the new promoter of the company so as to restore the credibility of the company and to bring in necessary funds. All the major stakeholders in MIL were also unanimous in changing the exiting promoter. Accordingly, the Board of Directors of the company recommended the change of guard at the MIL to the CLB.

IL and FS to be new promoter of Maytas Infra Limited