GVK Group promoters are in trouble after the Central Bureau of Investigation (CBI) on Thursday registered a case of fraud and criminal conspiracy against Gunupati Venkata Krishna Reddy, the chairman of the GVK Group of Companies and his son G V Sanjay Reddy, Managing Director of Mumbai International Airport Ltd (MIAL). Amid reports that the two have been booked, sources in GVK told BusinessToday.In that there has been no wrongdoing in the company and the allegations are motivated.
Confirming that six CBI officials had visited the GVK corporate head office in Hyderabad on Wednesday, sources informed that the officials had told them that they were acting on behalf of an anonymous letter alleging wrongdoing by the two key promoters of the group and therefore the CBI had registered a case against the two among others in connection with alleged irregularities amounting to Rs 705 crore in running of the Mumbai International airport. The officials also wanted to know if the books of accounts of the MIAL, GVK Airport Holdings and nine other companies were maintained by the Hyderabad office, which apparently they were told was not the case.
Sources in GVK also told BusinessToday.In that there is no truth in the reports that the group chairman Krishna Reddy and his son Sanjay Reddy have been booked. They also said that the accounts of the group are handled by two of the big four auditors and the two have till date never pointed out any wrongdoing by the group and have always given clean audit reports. Therefore, until and unless any wrongdoing is proved, it is incorrect to level charges, said the sources. "Five things that the CBI is pointing to are based on the anonymous letter and are all unproven charges," they said.