Pravasi Bharatiya Divas -Union Minister gives hope to Maytas Property (Hill County Hyderabad) Buyers
Hyderabad News. TOI 08.01.10
THE Union minister for corporate affairs , Salman Khurshid, on Thursday assured non-resident Indians (NRIs) of a speedy solution for non-delivery of flats by Maytas Properties, the Hyderabad based realty firm promoted by the kin of former Satyam chairman Ramalinga Raju.
The minister said that the government is working towards safeguarding the company and will soon resolve the issue of non-delivery of flats.
Speaking at the Pravasi Bharatiya Divas, Khurshid assured that a viable solution has been found to safeguard the interests of investors in the company . All they need is cash flow to finish the project and two major infrastructure companies have come forward to help the government in this regard , he said.
The minister, however, ruled out providing any financial bail-out to the cash-starved company that landed in trouble following the financial scandal at Satyam Computer Services, which was subsequently acquired by Tech Mahindra.
Being witness to several failed attempts made by the company to initiate work in the project, the home owners association of Maytas Hill County, Hyderabad, the upmarket Rs 1,100-crore residential project of Maytas Properties, took the Pravasi Bharatiya Divas route to knock at the governments door.
There seemed to be no firm commitment on behalf of the government mainly because its a closely-held company. Moreover, we have been hearing of many such promises from the company for the past one year, said a villa owner.
According to a delegate present at the function, around 400 NRIs from Australia, the US and the UK have purchased flats being developed by Maytas Properties.
After the Satyam scam broke out, the government had inducted Ved Jain, past president of the Institute of Chartered Accountants of India, onto the board of the company to rescue it.
Estimates suggest that the company needs around Rs 300 crore to get going with the project.
The company had also last year communicated to the resident owners that it had tied up with Bangalore-based Shriram Properties to fund the project. But there has been no development on this front so far.
Comment :
Year has passed by with little help to buyers at Hill County, Hyderabad. Unfortunately, here, neither police complaint nor legal action work in the case of large scale diversion of funds by companies. Companies explain it away as normal business expenditures.
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