The Andhra Pradesh High Court on Friday quashed a government order awarding a road construction contract worth Rs.121 crore to Maytas Infra.

The bench comprising Justices G Raghurama and Ramesh Ranganathan gave the order on a petition filed by Narayana Reddy, Gobannapet village head, alleging that the contract was awarded to Maytas Infra on nomination basis ignoring the tendering process, causing enormous loss to the exchequer.

The State Transport, Roads and Buildings Department had awarded a contract for construction of 30-Km-long road from Sugamanchipalli village to Mangapatnam village in Kadapa, home district of former chief minster YS Rajasekhara Reddy, on December 23, 2008.

The court while setting aside the GO, ordered the government to follow due tendering process to award the contract.

The state government while arguing the case said it had to award the contract on nomination basis as the tendering process involved delay.

The bench had issued a stay order against the company not to take up any works related to the contract on February 13 last year.

The company scrip today closed at Rs 187.45., down Rs 1.75 against previous close. The IL&FS-owned Maytas Infra (MIL) was earlier promoted by disgraced Satyam founder Ramalinga Raju.