Andhra Pradesh Chief Minister Y S Rajasekhara Reddy has said the state Criminal Investigation Department is probing the affair of Maytas Infra, the firm promoted by the family of Satyam Computer Services [Get Quote] former chairman B Ramalinga Raju.

"How can Maytas escape investigation when there are allegations that funds from Satyam got diverted to Maytas," the chief minister questioned at a press conference in hyderabad on Tuesday.

He said, 'one probe leads to the other', pointing to the CID investigations into the Satyam scandal.

Referring to the various infrastructure projects being executed by Maytas and its joint venture partners in the state, the chief minister said: "If we have genuine doubt about their capabilities, we will look at alternatives. If work can go without any problem, we will continue. We will only see that there is no risk to the government."

He said officials of the irrigation department have been directed to 'thoroughly and closely' monitor the projects being executed by Maytas. The bank guarantees provided by Maytas are also being verified, he added.

Replying to a question, the chief minister said Satyam Computer Services had been allotted 50 acres near Visakhapatnam for an IT Park only in accordance with the industrial policy of the state government.

"Satyam is a prestigious company. It's only the management that has defrauded the company and the shareholders," Rajasekhara Reddy pointed out.

He, however, did not specify whether the government would cancel the land allocation.