Hit by cash crunch, Maytas Infra has failed to pay salaries to 1,400 employees for the last two to three months. According to sources, the Hyderabad-based infrastructure company, with an order book of Rs 8,000 crore, is facing intense pressure to pay its employees.
The company had already introduced pay cuts in the range of 10 to 25 per cent to cut down expenses and take the company on the path to recovery. “Since it is school admission time, several employees are exerting pressure on the management to pay salaries. But the company does not have money,” sources said.
The company, however, had recently deposited outstanding provident fund and Tax Deducted at Source (TDS) for the fiscal year 2009 with the respective organisations after a short delay. The company has to deposit TDS money by 7th of the succeeding month, failing which the employer has to pay one per cent interest every month. While the EPFO rules give the employer 18 days to deposit the deducted provident fund money, penalties will be levied in the event of a default.
All attempts to contact government-appointed directors for a confirmation failed. Maytas Infra is facing a severe shortage of funds following Satyam founder Ramalinga Raju’s confession to Rs 8,000-crore accounting fraud on January 7. The company has sought a debt-restructuring of Rs 2,800 crore, including Rs 1,800 crore for Maytas Infra and another Rs 1,000 crore for various special-purpose vehicles, under Corporate Debt Restructuring.
The company chairman, Mr K. Ramalingam, one of the government-appointed directors, had written to the government seeking more time for the implementation of the projects awarded to the company.
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