Maha Govt scraps Rs 480 cr contract to Maytas Infra

MUMBAI: The Maharashtra government on Wednesday cancelled a Rs 480 crore order awarded to Maytas Infra, citing irregularities in the tender process, although the project was awarded last year.

"The order stands cancelled," Chief Minister Ashok Chavan told reporters after a cabinet meeting.

"Irregularities were found in the tender process as a result of which we are scrapping the tenders. Fresh tenders would be floated," Chavan said.

Hyderabad-based Maytas, promoted by the family of Satyam founder Ramalinga Raju, is under scrutiny by the Andhra Pradesh government after a Rs 7,800 crore fraud came to light in the IT company.

Replying to a query on purchase of land by Satyam near Nagpur for the multi modal cargo hub MIHAN, Chavan said the deal would be reviewed.

Maytas Infra in September last year, bagged two orders aggregating Rs 480.67 crore from the Maharashtra State Electricity Distribution Company for electrification of two districts in Maharashtra.

The orders were for building electricity sub-stations, transmission lines and related works in Beed, Nanded and Ahmednagar districts.

Maytas Infra's other projects that are under review include the Hyderabad Metro rail project.