General News

CBI Files FIR Against GVK Group, Others In A Scam

CBI registered a case against G Venkata Krishna Reddy, the chairman of the GVK Group of Companies and the Mumbai International Airport Ltd. These charges include allegations of irregularities to the tune of Rs 805 crore.  The case also involves officials of the Airport Authority of India and nine other private companies.

Filing Of FIR

The case alleges all have of causing wrongful gain of over 805 crores to themselves. Also, for causing a loss to the public exchequer between 2012-2018, reads the FIR. According to the FIR, GVK Airport Holdings Ltd formed a Joint Venture company named Mumbai International Airport Ltd, Airport Authority India and few other foreign institutions. The GVK owns 50.5 per cent of the shares and 26 per cent was with AAI.

GVK Reddy is the chairman of MIAL and GV Sanjay Reddy, who was named in the FIR, is the Managing Director of MIAL. The agreement signed between AAI and MIAL in 2006 stipulates that MIAL shall run the Mumbai airport and they will have to share 38.7 per cent of their revenue with the AAI as annual fees. They will use the rest for the modernization, operation and maintenance of the airport.

More Allegations

In its FIR, the premier investigating agency alleged that the accused had siphoned off Rs 310 crore by showing the execution of bogus work contracts with nine other private companies. Most real estate development in the 200-acre undeveloped land parcel around the Mumbai airport between 2017-18, the agency contended.

The agency also alleged that the promoters of the GVK Group of Companies with criminal intention to cause loss to AAI used the surplus funds of MIAL to the tune of 395 crores to finance their other group companies between 2012 and 2018.

Trouble For The GVK Group

The promoters of the GVK Group of Companies in MIAL have embezzled more than 100 crores of the joint venture company by resorting to inflating the expenditure of MIAL,” the FIR read. The wrongful gain to the accused, mainly the promoters of GVK Group of Companies works out to be around Rs 805 crore as per the complaint. But the investigation has revealed that these accused have also under-reported the revenue of MIAL during the same period. Including this, the total loss to the public exchequer will be more than Rs 1,000 crore.