Infrastructure Leasing and Finance Company (IL&FS) is seen emerging as the government’s favorite for taking over the Hyderabad-based infrastructure construction company Maytas Infra, promoted by the family of Ramalinga Raju, the former chairman of the fraud-ridden Satyam Computer Services, according to a media report.
IL&FS is one of the 19 banks and financial institutions (FIs) that have collectively lent Maytas Infra Rs 5,000 crore. It is a partner in several major Maytas projects including the Hyderabad Metro, the report added.
Domestic FIs including IL&FS, IFCI and Sicom had extended loans to the Raju family against Maytas Infra shares. Following the debacle last month, these lenders had urged the government to supersede Maytas Infra’s board and relax open offer norms that require companies to offer shareholders an average of the last six months’ price, the report stated.