Maytas Infra Limited (MIL) has clarified that the Company has negotiated the induction of SBG as its shareholder after due consultations with concerned Agencies, including Government of India. This clarification has come in response to the erroneous reports in some sections of the media that the Company Law Board (CLB) has rejected the induction of the Saudi Bin Laden Group (SBG) into the shareholding capital of Maytas Infra Ltd.
Government Nominee Directors, Mr Ved Jain and Mr Anil Agarwal had detailed discussions with the officials of Ministry of Corporate Affairs (MCA), prior to the induction of SBG as a shareholder, as also at the time of filing of the Company's request to CLB for getting four Directors of SBG to come on the Board of the Company.
The Company sought and received all requisite approvals for the induction of the SBG as a shareholder, including approvals from its existing shareholders in General Meeting for SBG induction through a Preferential Issue, and attendant approvals from the Stock Exchanges and SEBI.
MCA appreciated the induction of the SBG as a shareholder and also supported the induction of four Directors of SBG in the Company and, in this regard filed an affidavit before the CLB. Pursuant to the receipt of all requisite approvals, the SBG has remitted Rs301 crore and has since been allotted shares of MIL equivalent to 20% of paid-up equity capital.
The induction of four Directors has been necessitated as SBG, apart from providing a FDI of Rs 301 crore has also entered into an explicit understanding with the Company to provide infrastructure orders of US$ 1.50 billion to the Company over the next three years. With the consent of Government of India, the Company had applied to the CLB requesting for its approval to appoint nominees of the SBG as Directors of MIL. Such approval would have accorded SBG Nominees immunity from legal action relating to any past misdemeanor of MIL. The CLB has not acceded to the foregoing request. The Company is in the process of understanding the rationale behind the CLB order and would then take appropriate action. IL&FS remains in Management control of MIL with more than 26% of the equity shareholding of the Company as per the orders of the CLB dated August 31, 2009. All other conditions of the CLB order have been complied with by the Company. MIL has also given an undertaking before the CLB and the MCA in this regard.
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