Maytas probe: Other infra firms under RoC scanner too

Skeletons continue to tumble out of the closet in the Maytas case. The Registrar of Companies (RoC) has alleged that Maytas Infra bagged various projects by misinterpreting equity participation. CNBC-TV18’s Pranshu Sikka reports that three more companies, Nagarjuna Constructions (NCC), Gayatri Project and SREI Infra , could come under the scanner of the Ministry of Corporate Affairs (MCA) for their associations with Maytas.

Here is a verbatim transcript of Pranshu Sikka’s comments on CNBC-TV18. Also watch the accompanying video.

The are three projects in question. First, the Machilipatnam Port project where NCC, SREI Infra and Maytas Infra had got into a special purpose vehicle. Now, the allegations here are that a lot of the equity was transferred into the name of the entity shareholding companies which wasn’t a part of the concession agreement.

Similarly, other projects like the Pondicherry-Tindivanam Tollway project had the participation by three companies including Maytas and NCC. The allegation here is that a lot of equity was transferred into the name of Maytas shareholding company.

The third project which is the Sorang Power project had Gayatri Projects involved. But Gayatri Projects have denied having made any representation towards this project but RoC alleges that this project was bagged by the SPV with the participation of Gayatri Projects and they do not have any shareholding in this project till date.

NCC has denied these allegations. They say that there has been no violation of the equity representation on various projects. But according to sources the Ministry has taken note of this. In fact, they might even invoke another law which entitles RoC to seek information from these companies under 209, the inspection which was ordered they only had the power to call for information from Maytas Infra, but now they might even get the power which is being considered by the Ministry to get information from these three companies on the projects.

Also read: Maytas Infra violated prospectus to divert IPO funds: RoC