Business Today
Loading...

Mumbai airport scam: CBI books GVK Group chairman GVK Reddy, son; 5 key things to know

The case has been registered against these two in connection with alleged irregularities amounting Rs 705 crore in running of the airport

twitter-logoBusinessToday.In | July 2, 2020 | Updated 23:26 IST
Mumbai airport scam: CBI books GVK Group chairman GVK Reddy, son; 5 key things to know
GVK Reddy

The Central Bureau of Investigation (CBI) has 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).  The case has been registered against these two among others in connection with alleged irregularities amounting Rs 705 crore in running of the airport, news agency PTI reported citing unidentified CBI officials as saying on Wednesday.

Besides father and son, others who have been booked include MIAL, GVK Airport Holdings Ltd, nine other private companies and unidentified officials of AAI. Airport Authority of India (AAI) had formed a Joint venture with GVK Airports Holdings Limited, promoted by GVK group under public private partnership firm MIAL, for upgradation and maintenance of Mumbai Airport.

MIAL said it would have cooperated had CBI sought any explanation or documents. "MIAL is surprised to note the registration of case by CBI against MIAL and others. MIAL would have provided every assistance had the agency sought explanation or any document even if a preliminary enquiry had been initiated. MIAL is a transparent and responsible corporate entity which is committed to co-operate with the agency in its investigation to arrive at the truth," a company spokesperson said.

5 key things to know

  •  AAI and MIAL signed an agreement on April 4, 2006 for Mumbai airport's modernisation, upkeep, operation and maintenance.  It is alleged that promoters of GVK group in MIAL, in connivance with their executives and unidentified officials of AAI, allegedly siphoned off funds using different ways, officials also told the news agency.
  • The funds to the tune of Rs 310 crore were allegedly siphoned off showing bogus work contracts to nine firms in FY18, they added.
  • The promoters of GVK group allegedly misused reserve funds of MIAL amounting to Rs 395 crore to finance their group companies, the CBI alleged.
  • Even the expenditure figures of MIAL were claimed to have been inflated by the group by showing payments to employees at their headquarters and group companies who were not involved in the running of MIAL causing a revenue loss to AAI.
  • The promoters allegedly under reported revenue earnings of MIAL.

Meanwhile, the GVK Group recently said that it has raised over Rs 7,600 crore from investors which will be used to pare its debt and buy a 23.5 per cent stake in MIAL. GVK Airport Holdings (GVKAHL) the parent company of MIAL operates the Mumbai airport. The company has won the bid to develop Navi Mumbai International Airport (NMIA) through Navi Mumbai International Airport (Private) (NMIAL) which is the subsidiary of MIAL.

Also read: 5 cops arrested in Tuticorin custodial deaths case; residents celebrate with crackers

Also read: PM Modi quits Chinese social media platform Weibo after ban on 59 apps

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close