The Company Law Board has cleared the decks for IL& FS to acquire a controlling stake in Maytas Properties a privately held company promoted by the family of B Ramalinga Raju the founder of erstwhile Satyam Computer.

Mr Salman Khurshid corporate affairs minister said that IL&FS will hold 80% of the total equity in Maytas Properties as per the order issued by the CLB. “The IL&FS group will reconstruct the capital of the company by investing INR 2 million in equity share capital of the company to be issued at par whereby the total paid up capital of the company stands increased to INR 2.5 million.”

Mr Khurshid welcoming the order said that “I hope that this can be seen as the end of the saga of Satyam.” Maytas Properties has been facing a severe liquidity crunch for the last few years due to which many of its real estate projects, including the Hill county residential project in Hyderabad, got stalled.

Maytas was promoted by the family of Ramalinga Raju. In 2009, Raju sensationally confessed to inflating profits and revenue at his company was jailed. Thursday’s announcement concludes the government's nearly two year long search to find another owner for all the three companies and stabilise their operations.

(Sourced from ET)