The government counsel said on Tuesday Maytas Properties, whose accounts are being investigated along with Satyam Computer Services, has no land bank though the firm claims to hold 6,800 acre. Further, the balance sheet of the company only provides details for 31 out of 151 subsidiaries.
Maytas Properties, which has a turnover of a mere Rs 22 crore (Rs 220 million) and does not own any land, was valued at Rs 6,523 crore (Rs 65.23 billion) by audit firm Ernst &Young and the valuation was done in a day, the counsel said.
These statements were made by the government counsel before the Company Law Board on Tuesday on a government petition for superseding the board of Maytas Properties.
Maytas Properties is run by B Rama Raju, son of B Ramalinga Raju, founder of Satyam Computer Services. The government last week had moved CLB for taking over the boards of Maytas Properties and Maytas Infra, which are controlled by kin of Raju based on information that management of these two companies indulged in fraudulent activities and financial irregularities.
While the hearing in case of Maytas Infra has been postponed to February 26, as it had filed a caveat with CLB, Maytas Properties didn't get a postponement.
In its response, Maytas Properties suggested that the CLB should appoint a director on its board or put an observer, who would report directly to the quasi-judicial body.
"The CLB should put an observer on the Maytas board, who would report to you, or appoint a director in the company," said Mukul Rohatagi, senior advocate appearing for Maytas Properties.
But the government counsel opposed it and requested the CLB to direct the government to take over the company's board.
Maytas advocate refuted allegations of any misdoing in the company by saying that there's been no allegation by any bank, financial institution, investors or anyone regarding the company. Neither Satyam nor B Ramalinga Raju have any correlation with Maytas Properties.
Also, Maytas Properties never took a loan from Sataym nor it was developing any project for Satyam, he added.
The CLB reserved the order on the case and according to CLB chairman S Balasubramanian, the interim order would be passed in a day or two.
Manwhile, audit firm E&Y has denied that it had spent only one day in conducting the valuation. "We have taken considerably more time, which we believe was adequate, and also have significant evidence to that effect," said a company statement.