Wednesday, March 11, 2009

State justifies stand on Maytas deals

By S A Ishaqui

Hyderabad,March 10: The state government has defended its decision to entrust work on a Rs 121-crore road to Maytas Infra Ltd on nomination basis in Kadapa district.

The AP High Court on February 13 had stayed the government order which allotted the work to Maytas Infra while dealing with a petition filed by Mr P Narayan Reddy, sarpanch of Obannapet village in the district. The court asked the government to file a counter affidavit.

Mr T. Chatterjee, principal secretary, transport, Roads and buildings, filed the affidavit stating that the allegation of the petitioner that entrusting the work to Maytas without calling tenders was meant to benefit certain individuals and causing loss to the exchequer was false and without basis.

He told the court that a pending criminal case against the Maytas founder chairman, Mr B. Ramalinga Raju, was not relevant in the present case. He did not agree with the contention of the petitioner that Maytas would be unable to complete the work.

Mr Chatterjee stated that the government had obtained sufficient securities for recovery of the money, and the question of non- completion of work does not arise.

Mr Chatterjee said the project to build a 25-km road from Mangapatnam to K. Sugumanchipalli village was part of the first package of Galeru Nagari Sujala Sravanthi irrigation project. Maytas had bagged the contract to construct the Gandikota dam in the first package. The road work was supplementary to the main agreement.Due to the construction of Gandikota dam, the existing road would be submerged and there was an urgent need to build another road, Mr Chatterjee said.

Mr Chatterjee submitted that it was an emergent work and in the public interest and the petitioner has no right to say that it was not in the public interest. He urged the court to vacate the stay orders.

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