Relief for Satyam Raju's Son

Hyderabad: In a relief to B. Teja Raju, vice-chairman, and other directors of Maytas Properties limited and Maytas Infra Ltd, the National Company Law Tribunal (NCLT) Hyderabad Bench allowed them to be appointed as directors of other companies.

The tribunal rejected the Union government’s request to declare that none of the directors in the companies shall be eligible for appointment as directors in any other company.

The Centre had filed the petitions before the Company Law Board on January 9 2009, seeking directions to declare that none of these directors shall be eligible to be appointed as directors of other companies. Subsequently, the petition was transferred to NCLT, principal bench at New Delhi and eventually their Hyderabad bench.

The contention of the Union government was that the directors and auditors of these companies were well aware about fictitious accounts of Satyam Computers Ltd and with a fraudulent intent they made deals on behalf of Maytas Ltd, in an attempt to replace the fictitious assets of Satyam Computers.

However, the NCLT bench noted that the Union of India has failed to make out a case against the directors of the said companies so as to invoke Section 388B (1)(a) of The Companies Act, 1956 and thereby to declare that none of the directors shall be eligible for appointment as directors in any other company.