Maytas Infra notice to Vedanta for encashing guarantee

HYDERABAD: Maytas Infra has issued a legal notice to Vedanta Aluminum alleging fraudulent and illegal encashment of two bank guarantees valued at Rs 64 crore in January. The company also accused Vedanta of not paying dues aggregating to Rs 29 crore.

Maytas Infra is run by Teja Raju, son of disgraced Satyam founder B Ramalinga Raju. The bank guarantees were produced by Maytas Infra towards a Vedanta Aluminum contract awarded in May last year for the construction of a township at Jharsuguda in Orissa, stated a company release on Thursday.

���Maytas Infra has served a statutory legal notice to Vedanta Aluminium under the Companies Act for non-settlement of the admitted dues. It is also in the process of filing a petition before the Mumbai High Court, as stipulated by law,��� the statement said.

Vedanta encashed the bank guarantees without even terminating the contract, according to Maytas. ���The bank guarantee can only be invoked if the company provides a termination contract or establishes breach of terms and conditions,��� the company added.