The AP state government has cancelled the Rs 12132 crore agreement for the Hyderabad Metro Rail Project that was awarded to Maytas Infra Ltd which was headed by B Ramalinga Raju's elder son Teja Raju.
Anam Ramnaryana Reddy, Municipal Administration and Urban Development Minister said that the deal has been cancelled as the company did not achieve financial closure even three months after the March deadline. Reddy further added that they will continue and take up the project and will announce a detailed plan on July 13.
Maytas had paid Rs 11 crore to the state government as an initial amount and provided Rs 60 crore as a bank guarantee after signing the agreement in September last year. As per the agreement, the company forfeits money if the project fails to achieve financial closure by March 17, 2009.