More trouble is brewing for Maytas Properties Ltd, the unlisted company promoted by the family of Satyam Computer Services Ltd founder B Ramalinga Raju.
The property owners of Maytas Hill County, its flagship project, are demanding that the construction work be completed in a definite time period or their money be refunded.
Maytas Hill County is coming up on 376 acres, comprising 840 apartments spread over 11 towers and 326 villas, at Bachupally on the outskirts of Hyderabad. The project was launched in 2005. The company had in April 2008 told Business Standard that construction of independent bungalows would be completed by the third quarter of 2008-09 and the apartments would be ready by the first quarter of FY10.
While flats are priced between Rs 50 lakh (rs 5 million) and Rs 1.5 crore (Rs 15 million), the independent units cost Rs 1.5 crore to Rs 2.5 crore. The owners also want the company to come clean on expenditure. They allege that the company had diverted some of the funds it received from the bookings to invest outside Maytas County and, therefore, it is faced with a shortage of funds.
When contacted, government-appointed board member Ved Jain said he could not respond to the query as he was travelling. Company officials, however, had earlier said they would need about Rs 150 crore (Rs 1.5 billion) to complete the project.
The flat owners, under the umbrella of Hill County Home Owners' Welfare Association, staged a protest with placards and raised slogans against the company and the promoters at the site here on Sunday.
According to association president Satish Tirupati, not a brick has moved at the construction site in six months. So far, only three independent units have been occupied and another 40 units are nearly ready. Around 30 per cent of the work is complete on the remaining units. However, the flats are not ready yet, he said.
The company had approached individual owners with a proposal to pool in more money to complete the pending work and also proposed to offer a credit note in return. But not many owners are enthused by this proposal. "We have already paid close to Rs 1 crore (Rs 10 million) and getting another Rs 15 lakh (Rs 1.5 million) is difficult, as the banks are not willing to lend any further," said a flat owner.
The flat owners have also requested the state government to intervene and ensure the construction is complete at the earliest or facilitate refund of their money. The owners would meet the Company Law Board officials tomorrow.