The Company Law Board, which is hearing a petition by the government for taking over the Maytas Infra board, is likely to give its ruling on Friday as arguments remained inconclusive.

Maytas Infra is run by B Teja Raju, the elder son of B Ramalinga Raju, who confessed to manipulating the accounts of Hyderabad-based Satyam Computer Services [Get Quote].

The CLB principal bench, headed by chairman S Balasubramanian, has suggested the Maytas' board should retain its current board and also have government-nominated independent directors. The bench also hinted giving board representation to its lenders, IDBI Bank and ICICI Bank [Get Quote].

However, it was against giving a board seat to IL&FS, a leading non-banking finance company, citing conflict of interest as the financial institution had given loans to the promoters against pledging of shares.  

In Thursday's hearing, the bench observed that if new board is put in place, they would need to start from scratch. It suggested retaining the current Maytas Infra board members and adding new government-appointed directors. The CLB has sought a reply from Maytas Infra by Friday.

The government counsel on Thursday said that as investigations are on in Maytas, a hostile management wouldn't cooperate and the present board should be restrained from acting as directors.

The government also said there is evidence the firm fudged its accounts with deceit and fraudulent intent, which brought the share price of Maytas Infra from Rs 525 to Rs 46 on Thursday.

The government last week had moved the CLB for taking over the boards of Maytas Properties (run by Ramalinga Raju's younger son B Rama Raju) based on information that the management of these two companies had indulged in fraudulent activities and financial irregularities.