Ministry seeks details on Satyam-Maytas called-off deal

NEW DELHI: The ministry of corporate affairs (MCA) has sought details into Satyam Computer Services��� aborted attempt to acquire 100% stake in Maytas Properties and 51% in Maytas Infrastructure, both promoted by the family of Satyam chairman Ramalinga Raju. The move comes in the wake of allegations of serious corporate governance lapses in the company���s move.

Minister of corporate affairs Prem Chand Gupta has asked his officials to look into allegations of corporate governance lapses brought against the Satyam group. The officials will ask for details about the company���s move, officials said on condition of anonymity. The minutes of the board decision is likely to be examined by the government to see whether any objections were raised by independent directors and if so, why those were ignored.

The official said that any possible action would be taken after examining the company���s response in detail. MCA had earlier taken a path-breaking step on corporate governance by proposing in the Companies Bill, 2008 that all companies ��� listed as well as unlisted ��� should reserve one-third of board strength for independent directors.

Satyam on Wednesday retracted from its surprise announcement a day ago to buy 100% stake in Maytas Properties and 51% in Maytas Infrastructure following sharp criticism from the company���s shareholders as well as the institutional investors.