Hyderabad: Maytas Infrastructure's CEO PK Madhav, facing a criminal case relating to a non-banking finance company, resigned from the company on Monday saying legal matters concerning Nagarjuna Finance was taking much of his time.
"Madhav has expressed his inability to continue as the CEO of the company in view of his attention and energy being used to address the legal matters pertaining to the Nagarjuna Finance case," Maytas Infra said in a statement.
The news of the resignation came even as the Union Government ordered a serious fraud probe into the company's affairs in relation to a Rs 7,800 crore fraud in Satyam Computer founded by Ramalinga Raju.
Madhav was associated with the crisis-ridden Maytas Infrastructure, also promoted by Raju's family, since May 2006 and helped the company grow to the present status. Among others, it has won the Hyderabad Metro project.
His resignation is effective from January 14, 2009. Madhav was arrested along with the Nagarjuna group chairman KS Raju on December 16 and was sent for judicial custody till December 29, facing charges of defaulting on payments to its depositors on maturity, when he was director of Nagarjuna Finance.
At present, both Madhav and Raju have been released on conditional bail.
Maytas Infra said that its board will find suitable replacement for the CEO's position. As of now, Teja Raju, vice chairman of the company is looking after the administration and other operational functions.
Earlier this month, Maytas Infra's non-executive director and chairman RC Sinha had resigned from the company. The board is left with RP Raju, Teja Raju and Chander Sheel Ansal.
As of September 2008, Teja Raju held 2.53 per cent stake in the company, while the promoter group (Raju family) controlled 36 per cent.
It was Satyam's move to acquire Maytas Infra as also Maytas Properties that had first exposed trouble in the IT firm. Raju has since admitted to cooking Satyam's books and is in police custody.
The Centre ordered a probe by Serious Fraud Investigation Office into the affairs of the two Maytas firms to get to the bottom of the Satyam episode.
"Madhav has expressed his inability to continue as the CEO of the company in view of his attention and energy being used to address the legal matters pertaining to the Nagarjuna Finance case," Maytas Infra said in a statement.
The news of the resignation came even as the Union Government ordered a serious fraud probe into the company's affairs in relation to a Rs 7,800 crore fraud in Satyam Computer founded by Ramalinga Raju.
Madhav was associated with the crisis-ridden Maytas Infrastructure, also promoted by Raju's family, since May 2006 and helped the company grow to the present status. Among others, it has won the Hyderabad Metro project.
His resignation is effective from January 14, 2009. Madhav was arrested along with the Nagarjuna group chairman KS Raju on December 16 and was sent for judicial custody till December 29, facing charges of defaulting on payments to its depositors on maturity, when he was director of Nagarjuna Finance.
At present, both Madhav and Raju have been released on conditional bail.
Maytas Infra said that its board will find suitable replacement for the CEO's position. As of now, Teja Raju, vice chairman of the company is looking after the administration and other operational functions.
Earlier this month, Maytas Infra's non-executive director and chairman RC Sinha had resigned from the company. The board is left with RP Raju, Teja Raju and Chander Sheel Ansal.
As of September 2008, Teja Raju held 2.53 per cent stake in the company, while the promoter group (Raju family) controlled 36 per cent.
It was Satyam's move to acquire Maytas Infra as also Maytas Properties that had first exposed trouble in the IT firm. Raju has since admitted to cooking Satyam's books and is in police custody.
The Centre ordered a probe by Serious Fraud Investigation Office into the affairs of the two Maytas firms to get to the bottom of the Satyam episode.
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