In your interest.
Online Personal Finance Magazine
No beating about the bush.
The government has assured NRIs that it would work out a solution to the non-delivery of flats sold by Maytas Properties, promoted by relatives of disgraced Satyam founder B Ramalinga Raju
Ruling out any bailout package for Maytas Properties, the government on Thursday assured non-resident Indians (NRIs) that it would work out a solution to the non-delivery of flats sold by the company promoted by relatives of disgraced Satyam founder B Ramalinga Raju.
"I am confident of finding a solution to the problems. We are looking at it seriously. I am hopeful of resolving the issue as soon as possible," corporate affairs minister Salman Khurshid told reporters on the sidelines of the Pravasi Bharatiya Divas.
"We will not offer any bailout for the company. They don't need a bailout. They need just cash flow," Mr Khurshid said at the conference where many NRIs and persons of Indian origin (PIOs) raised the issue of non-delivery of flats sold to them by the company.
According to a delegate, around 400 NRIs from Australia, the US and the UK have purchased flats being developed by Maytas Properties.
Maytas Properties, which ran into trouble after Mr Raju admitted to a multi-crore rupee accounting fraud, was developing a Rs1,100-crore residential ‘hill county’ project near Hyderabad. The project, however, could not be completed as the company faced financial problems.
Before the disclosure of fraud by Mr Raju in January 2009, the shareholders of Satyam had rejected the efforts of the then promoters to acquire Maytas Properties along with another sister company Maytas Infra.