Updated 2 July 2020 at 07:28 IST
CBI registers case against GVK Group for allegedly siphoning off Rs 705 crore from MIAL
The CBI has booked the chairman of the GVK Group of Companies and MD of MIAL for alleged irregularities in running of Mumbai International Airport Ltd.
In a big development on Thursday morning, the Central Bureau of Investigation (CBI) has booked the chairman of the GVK Group of Companies and Managing Director of Mumbai International Airport Ltd for alleged irregularities to the tune of Rs 705 crore in the running of the airport. Besides GVK group chairman, the CBI has also booked his son GV Sanjay Reddy who is the Managing Director of MIAL, companies MIAL, GVK Airport Holdings Ltd, nine other private companies and unidentified officials of AAI.
Allegations by the CBI
The agency alleged that Venkata Krishna Reddy Gunupati, chairman of the GVK Group of Companies and his son G V Sanjay Reddy, Managing Director of Mumbai International Airport Ltd in connivance with their executives and unidentified officials of Airports Authority of India (AAI) resorted to siphoning of funds using different ways, as per sources.
The agency has also alleged that they siphoned funds showing execution of bogus work contracts to nine companies in 2017-18 causing a loss of Rs 310 crore and allegedly misused reserve funds of MIAL to the tune of Rs 395 crore to finance their group companies. Moreover, as per CBI, the group inflated expenditure figures of MIAL 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.
Airport Authority of India Ltd had formed a Joint venture with GVK Airports Holdings Limited, promoted by GVK group under public-private partnership firm Mumbai International Airport Ltd for upgradation and maintenance of Mumbai Airport. On April 4, 2006, AAI entered into an agreement with MIAL for modernisation, upkeep, operation and maintenance of Mumbai Airport with MIAL.
(with PTI inputs)
Published By : Navashree Nandini
Published On: 2 July 2020 at 07:28 IST