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Ramalinga Raju confessed in early January to having cooked the books of Satyam Computer Services Ltd to the tune of at least Rs7, crore.
The scrapping of the Rs12, crore Hyderabad Metro project deal comes a day after Maytas benefited from a move by the Karnataka government to reverse an earlier decision to scrap the award of a project to develop two airports in the state to the firm.
The government-appointed chairman of Maytas Infra, K. Interestingly, the scrapping of the Metro deal comes a day after Maytas benefited from a decision of the Karnataka government to reverse an earlier decision to scrap the award of a project to develop two airports in the state to the firm. It was to be completed five-and-a-half years from the date of award of the project.
The Maytas-led consortium had earlier also missed a deadline to provide a bank guarantee of Rs crore to the government by 17 March, and had sought an extension of six months from the original deadline of 17 March. It paid around Rs71 crore to the government in tranches after it was awarded the project on 8 August. The Maytas-led consortium had offered to pay around Rs30, crore to the government as revenue from the project over 35 years—one reason why it was awarded the project.
International Journal of Project Management
Another factor that worked in its favour was its refusal to accept the financial assistance offered by the Union government to the tune of around Rs1, crore as viability gap funding. The GVK-led consortium, however, had pulled out before the financial bidding stage citing its belief that the project was unviable.
Reddy said the government would not return the Rs71 crore paid by Maytas. In a statement issued late Tuesday evening, Andhra Pradesh chief minister Y.