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Maytas sues Vedanta Aluminium

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BS Reporter Mumbai
Last Updated : Jan 25 2013 | 2:49 AM IST

Maytas Infra has issued a legal notice to Vedanta Aluminium - a subsidiary of Vedanta Resources Plc , against encashing Bank Guarantees worth Rs 64 crore in mid-January and for not clearing admitted dues.

In a statement to the Bombay Stock Exchange, Maytas said that the bank guarantees were produced by it towards the contract awarded by Vedanta Aluminium to execute the construction of township for the latter in May last year.

Terming it as a breach of contract by Vedanta, Maytas added that bank guarantee can be invoked only if the company provides a termination contract or establishes breach of terms and conditions. However, it added, Vedanta Aluminium encashed the bank guaranteed without doing the needful.

Moreover, Vedanta has not paid undisputed amounts worth Rs 29 crore towards the bills submitted by Maytas Infra for the last two months, the statement added.

Further, it said that Vedanta had illegally confined the employees of Maytas Infra at their Jharsugda site for ten days in January.

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First Published: Feb 06 2009 | 12:34 PM IST

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