Private equity fund Infinite India Investment Management may take Maytas Properties to court. “We are exploring all the legal recourses,” a source from Infinite India told VCCircle. In February last year, real estate fund Infinite India, had invested Rs 600 Cr in Maytas Properties in form of compulsory convertible debentures. The lock-in period for the investment was three years and Infinite was planning an exit through IPO. Infinite India is a joint venture between JM Financial and US-based SRS Fund.
“Maytas Properties has breached the terms of the Investment Agreement with the funds advised/managed by us. Following this, we are looking at options in consultation with legal counsels to exercise rights under the Investment Agreement,” an Infinite India spokesperson told The Time of India. On December 16,2008, Satyam had announced acquisition of 100% stake in Hyderabad-based Maytas Properties for $1.3 billion and a 51% in public listed firm Maytas Infra for $300 million.This was dropped the next day. Maytas had not informed Infinite about its deal with Satyam.
Both Maytas Properties and Maytas Infrastructure have also come under investigation as the Ramalinga Raju is also one of the promoters of these firms. Also now Raju’s Satyam scam seems to be getting bigger and deeper. The prosecution has accused Raju of creating fictitious salary accounts, and he may have diverted those funds to buy property for Maytas.