Government auditor CAG has sought reversal of over Rs 100 crore “inadmissible expenditure” by GMR Hyderabad International Airport Limited (GHIAL), saying it was collected and kept in an escrow account by the private-led airport operator.

“Charging of inadmissible expenditure of Rs 100.40 crore to Passenger Service Fee (Security Component) fund by the operator was irregular and needed to be reversed early,” the Comptroller and Auditor General said in a report tabled in Parliament on Friday.

It said the amounts, collected in 2010-11 and 2011-12, related to administrative costs, terrorism insurance premium, land registration charges, purchase of land, construction of CISF quarters and interest paid on funds borrowed for their construction, were kept in the escrow account, it said.

Expenses on these heads were not admissible in the account which was meant for Passenger Service Fee (Security Component) as per the standard operating procedures set by the Civil Aviation Ministry.

The CAG said the issue of inadmissible expenses from PSF(SC) fund by the operator was brought to the notice of the Ministry, which directed GHIAL to “immediately reverse the aforesaid entire ineligible expenditure incurred up to 2010-11 and submit a compliance report.”

“GHIAL had not withdrawn the ineligible expenditure as directed by the Ministry but had booked additional inadmissible expenditure of Rs 8.84 crore during 2011-12,” the CAG said while seeking early reversal of the amount.