CBI Registers Case Against GVK Group Chairman, Son For Siphoning Off Rs 705 Crore From Mumbai Airport
The CBI has registered a case against GVK Reddy, the chairman of the GVK Group of Companies and GV Sanjay Reddy, vice chairman of GVK Group and managing director of Mumbai International Airport Ltd. for alleged irregularities to the tune of Rs 705 crore in running of the airport, officials said on Wednesday.
Airport Authority of India Ltd. had formed a joint venture with GVK Airports Holdings Ltd., promoted by GVK Group, under public private partnership firm Mumbai International Airport Ltd. AAI entered an agreement with MIAL on April 4, 2006 for modernisation, upkeep, operation and maintenance of Mumbai Airport.
CBI has alleged that promoters of GVK group in connivance with their executives and unidentified officials of AAI resorted to siphoning of funds from MIAL using different ways, officials said.
The agency has alleged that they siphoned off funds showing execution of bogus work contracts to nine companies in 2017-18 causing a loss of Rs 310 crore, they said.
The promoters of GVK group allegedly misused reserve funds of MIAL to the tune of Rs 395 crore to finance their group companies, the CBI said.
The agency also said that 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, according to officials.
The promoters allegedly under reported revenue of MIAL by entering into contracts with related parties and meeting their personal and family expenses using MIAL funds, they said.
The CBI has also registered cases against MIAL, GVK Airport Holdings Ltd., nine other private companies and unidentified officials of AAI, the officials said.