The Andhra Pradesh government on Tuesday scrapped the Rs 12,132 crore Hyderabad Metro Rail Project contract awarded to Maytas Infra. Minister of Municipal Administration and Urban Development Anam Rama Narayana Reddy said that a Cabinet meeting would be held on July 13 to decide whether to go for global retendering.

“For now the project is scrapped. A consortium lead by Maytas Infra that was awarded the contract is unable to start the project for various reasons. Other consortia are not interested in taking up the project so we are terminating the contract with Maytas and scrapping the project for the time being. All agreements between Maytas and the government regarding this project now stand cancelled. The CM will hold a meeting on July 13 to decide what to do next,” the Minister said on Tuesday. The government also stated that it would not return the Rs 71 crore that Maytas has so far paid to it.

Maytas Infra, owned by Satyam founder B Ramalinga Raju, and headed by son B Teja Raju, ran into trouble after B Ramalinga Raju admitted to fraud. Maytas Infra was unable to achieve financial closure in March and, as per the agreement providing for a 180-day extenstion, sought that much time from the state government.