The Company Law Board (CLB) on Thursday allowed infrastructure finance company IL&FS to take over Maytas Properties, a company promoted by the family members of disgraced Satyam founder Ramalinga Raju.
IL&FS has been allowed to hold 80 per cent of the equity in Maytas Properties, Corporate Affairs Minister Salman Khurshid told reporters here today. The new promoter will pump Rs 150 crore (Rs 1.5 billion) into the crisis-ridden company over the next 18 months, he said.
"I permit the induction of four nominees of IL&FS group as director on the board of Maytas Properties including the Chairman," CLB chairman Justice D R Deshmukh said in the order.
He further said that existing director of Maytas Properties -- Rama Raju, D Gopal Krishnana Raju and D Venkata Satya Raju -- would resign immediately on induction of IL&FS group as the strategic investor in Maytas Properties.
According to the CLB order, IL&FS will be required to hold at least 40 per cent equity in the property company for next three years.
In order to allow IL&FS to take over the company, the paid up capital of Maytas Properties would be raised from Rs 5 lakh to Rs 25 lakh. IL&FS had already taken over Maytas Infra, another company which was promoted by the kins of Raju.