Hyderabad, February 5, 2009: Maytas Infra has issued a legal notice to Vendanta Aluminum Limited for fraudulently and illegally encashing two Bank Guarantees worth Rs. 64 crores on 20.1.2009, and for not clearing admitted dues. The Bank Guarantees were produced by Maytas Infra towards the contract awarded by Vedanta Aluminum to execute the construction of township for Vedanta Aluminium Limited on 7th May, 2008.

The legal notice by Maytas Infra is a result of the breach of contract by Vendanta due to the following:

• Vedanta has encashed the Bank Guarantees without even terminating the contract or establishing any breach of the terms & conditions by Maytas Infra. The Bank Guarantee can be invoked only if the company provides a termination contract or establishes breach of terms and conditions.
  
  
• Vedanta has not paid the undisputed amounts worth Rs. 29 crores towards the bills submitted by IL&FS Engineering and Construction Company Limited for the last 2 months by forcibly retaining them till today.
  
  
• Further, Vedanta in collusion with the local elements had illegally confined the employees of IL&FS Engineering and Construction Company Limited working at their Jharsuguda site from January 15th, 2009 to January 25th, 2009.

Commenting on the situation Mr. Sudheer Mareddi, Vice President, Buildings & Structures, Maytas Infra, said, “Vedanta Aluminium Limited fraudulently encashed our Bank Guarantees and also did not settle our bills. Vedanta has not issued any termination notice to Maytas Infra as of today, neither has there been any intimation from their end on any breach of terms & conditions. It is a clear case of Vedanta taking advantage of the situation that Maytas Infra is currently in. Armed with money that lawfully belongs to Maytas Infra, Vendanta is in talk with other local contractors to complete its project.”

For non settlement of the admitted dues, Maytas Infra has served a statutory legal notice of company winding up to Vedanta Aluminium Limited under the Companies Act, and is in the process of filing company winding-up petition before the High Court at a time as stipulated by law.

The total value of the project is Rs. 232 crores for construction of township, which is to be completed in all respects by December, 2009. Maytas Infra had already completed work amounting to Rs. 35 crores, and work is in progress for another Rs. 10 crores after mobilizing men, machineries, plant and equipment worth Rs. 30 crores.

About Maytas Infra

IL&FS Engineering and Construction Company Limited, a Hyderabad-based infrastructure development Company is one of the leading Infrastructure Development, Construction and Project Management Companies in India with more than two decades of rich and varied experience in executing projects under various domains such as Buildings & Structures, Transportation, Water, Energy and BOT. It currently employs 2700 professionals. Maytas Infra is an ISO 9001 - 2000 certified Company, committed to the highest standards of quality. The Company bagged the ‘Fastest Growing Construction Company in India’ award in 2008 for the third consecutive year in large size category instituted by Construction World and National Institute of Construction Management & Research (NICMAR). It had bagged this award in 2006 for small size category, and in 2007 for medium size category. Maytas Infra is the only Infrastructure Company from India to be designated as 'Global Growth Company' (GGC) by the prestigious 'World Economic Forum' of which it became a member recently. To know more, please visit: www.maytasinfra.com