IL&FS Group gears up to recover dues from Mahindra Satyam

V. Rishi Kumar Updated - June 13, 2012 at 09:43 PM.

IL&FS Engg to join as petitioners in merger move

The IL&FS Group companies — IL&FS Financial Services Ltd (a shareholder of Mahindra Satyam) and IL&FS Engineering Services Ltd — are seeking to thwart the merger of Mahindra Satyam and Tech Mahindra on the ground of suppression of facts while seeking settlement of their dues.

At the annual general meeting held on June 8 here, some of the minority shareholders raised issues about their dues and merger ratio.

IL&FS Engineering is set to become a co-petitioner with Mahindra Satyam when the latter files its merger proposal in the Andhra Pradesh High Court.

Mr G. Venkateshwar Reddy, Company Secretary of IL&FS Engineering, told

Business Line , “For any merger to take place through the approval of court, a meeting of all shareholders and creditors is mandatory. We believe Mahindra Satyam has suppressed their dues to creditors.

“Therefore, we will join as a co-petitioner to raise objections about disclosures and seeking payment of dues.”

Mr Reddy said already a civil petition filed by 37 companies for recovery of Rs 1,230 crore extended as loans to erstwhile Satyam Computers is under consideration. “Maytas Infrastructure had extended Rs 392 crore as Inter-Corporate Deposits (ICDs) to Satyam. Together with loans extended by Maytas Properties, the principle is about Rs 650 crore,” he said.

As a minority shareholder, IL&FS had petitioned the Mahindra Satyam board about their concerns during the AGM raising the issue of Rs 1,230 crore shown under the head ‘suspense account' on the liability side of the balance sheet.

This reflects money received by the company. The auditors too, have qualified these observations.

>vrishi@thehindu.co.in

Published on June 13, 2012 16:13