The Hindu : Andhra Pradesh / Hyderabad News : Review of deal with Maytas ruled out

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Thursday, Dec 25, 2008
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Review of deal with Maytas ruled out

‘No change in equation between government and Maytas in view of World Bank action against Satyam’

HYDERABAD: The blacklisting of Satyam Computer Services by the World Bank notwithstanding, the State government is not considering any review of the agreements it entered into with Maytas Infrastructure, the company owned by Satyam chairman B. Ramalinga Raju’s family members, for metro rail and other infrastructure development projects.

The government, according to senior officials, sees the World Bank’s action barring Satyam from any business deals with it for eight years as an “offshoot of mutual business differences” between two entities. The issue is a matter between two partners and one of the partners (the World Bank) did not like the manner in which the other behaved. “It has nothing to do with the State government,” a senior official of Chief Minister’s Office told The Hindu.

Officials are of the view that the alleged ‘data theft’ which the World Bank treated as a ‘breach of trust’ was not that serious an offence when it comes to India. While legislations like the Right to Information Act give access to information pertaining to a majority of the government’s actions, it is not a difficult task to secure information, even if it is confidential one, if one has “proper contacts” in the government, an advisor to the State government pointed out.

Officials averred that Satyam and Maytas, the two listed companies, are two different entities and the World Bank’s action against Satyam Computers doesn’t warrant a change in the equation between the government and Maytas. “We will look into the agreements with Maytas as and when something involving the State’s interests comes up,” an official remarked.

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