MMTC has decided to hold investment plans in a special purpose vehicle created by Maytas group for setting up a Special Economic Zone (SEZ).

Experts believe that that recent auditing fraud by Satyam chief R. Raju is a major cause to roll back from investment plans in SEZ. Maytas Infra Ltd and Maytas Properties are controlled by the sons of Satyam Computer Services Ltd founder, B Ramalinga Raju and their role in the corporate fraud is still not clear.

MMTC said in a press release, "In view of the recent developments related to Satyam Computer Services... the board of directors of MMTC at its meeting today reconsidered the investment proposal and decided to withdraw MMTC's participation in the equity of the propososed Special Purpose Vehilce being created by Maytas Group for setting up a multi-services SEZ,"

It should be recalled that the state run company had earlier approved investment of Rs 85.85 crore to acquire 5 per cent equity shares of SPV on Sep 26, 2008.

Shares of MMTC increased 1 per cent and closed at Rs 16,900 in the recent trading of Bombay Stock exchange.