Categories
India

Mumbai airport scam: CBI books GVK Group for siphoning off Rs 705 cr

On 4 April, 2006 AAI entered into an agreement with MIAL for modernisation, upkeep, operation and maintenance of Mumbai airport with MIAL

The Central Bureau of Investigation (CBI) has registered a case against Dr GVK Reddy, Chairman of GVK group, the company that runs the Mumbai airport – MIAL (Mumbai International Airport Limited), and others for alleged irregularities worth ₹705 crore in the development of Mumbai airport.

MIAL is a joint venture between AAI (Airports Authority of India), GVK and foreign entities. The AAI entered an agreement in 2006 for modernization and up gradation, operation and maintenance of Mumbai airport as part of joint venture calledMIAL.

The agreement stated that the revenue share has to be given first to AAI and then the balance earnings of MIAL shall be used for modernisation and upgradation, operation and maintenance and the essence of the agreement was to make it a world class facility.

Also read: Mumbai: Section 144 imposed till 15 July

CBI FIR alleges that the GVK group connived with their family members, relatives and employees to give undue monetary advantage to them and to cause corresponding unlawful loss to AAI.

On 4 April 2006 AAI entered into an agreement with MIAL for modernisation, upkeep, operation and maintenance of Mumbai airport with MIAL.

It is alleged that promoters of the GVK group in MIAL in connivance with their executives and unidentified officials of AAI resorted to siphoning of funds using different ways, officials said. 

Also read: Mumbai Police serves notice to Karishma Bhosale for protesting against loudspeaker blaring azan

The agency has alleged that they siphoned funds showing the execution of bogus work contracts to nine companies in 2017-18 causing a loss of Rs 310 crore, they said.

The promoters of the GVK group allegedly misused reserve funds of MIAL to the tune of Rs 395 crore to finance their group companies, the CBI has alleged.

The agency has alleged 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, they said.

The promoters allegedly under-reported revenue earnings of MIAL by entering into contracts with related parties and meeting their personal and family expenses using MIAL funds, they said. 

Besides GVK group chairman, the CBI has also booked his son GV Sanjay Reddy who is Managing Director of MIAL, companies MIAL, GVK Airport Holdings Ltd, nine other private companies and unidentified officials of AAI, they said.

The GVK group even used funds of MIAL by entering into agreements with a company owned by family members, relatives, employees to book train, air travel tickets and hotel booking for personal as well as group employees of GVK who were not connected to MIAL.

The agency has named total 13 persons and companies as accused as well as unknown public servants.

Sirf News Network

By Sirf News Network

Ref: ABOUT US

Leave a Reply