E&Y overvalued Maytas Properties: Govt.

New Delhi (PTI): Accusing Ernst & Young of over- valuing Maytas Properties, the government today told the Company Law Board that the global consulting firm valued the company run by kin of disgraced Satyam promoter B Ramalinga Raju at Rs 6,523 crore against its turnover of mere Rs 22 crore.

"How hollow this valuation is... As per our knowledge, the company does not have any land bank and this company, having a turnover of mere Rs 22 crore, was valued at Rs 6,523 crore," the deputy director appearing for the government told the CLB during a hearing in the Maytas Properties case.

The arguments were made by the government before the CLB, which is considering a petition by the government for removal of the board of Maytas Properties. The CLB is likely to pass the order later.

The government also alleged that the valuation of Maytas Properties by the consultancy firm was done in a day. When during the proceedings CLB Chairman S Balasubramanian asked, "whether this entire valuation was done in a week, the government replied, "No, the valuation was done in a day only".

However, E&Y denied the charge that it has done the valuation in just one day, saying the firm has "taken considerably more time, which we believe was adequate and also have significant evidence to the effect".