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CBI books GVK Group chief and others for ‘corruption’ in development funds for Mumbai airport

G.V.K. Reddy, promoter of GVK Group and full-time director of Mumbai International Airport Limited (MIAL)

G.V.K. Reddy, promoter of GVK Group and full-time director of Mumbai International Airport Limited (MIAL)   | Photo Credit: Mohammed Yousuf

The Central Bureau of Investigation (CBI) has registered a corruption case against G.V.K. Reddy, promoter of GVK Group and full-time director of Mumbai International Airport Limited (MIAL), and 13 others for allegedly causing a loss of about ₹705 crore to the exchequer.

Unknown officials of the Airport Authority of India (AAI) are also under the scanner for allegedly turning a blind eye to the diversion of funds and other irregularities.

Among those named are MIAL, its managing director and Mr. Reddy’s son, Venkata Sanjay Reddy, GVK Airport Holdings Limited and nine other private companies.

The FIR states that the accused persons were siphoning off the funds meant for the development of the airport in Mumbai from 2012 to 2018.

As part of the public private partnership, the AAI had formed a joint venture by the name of MIAL for the modernisation, upgrade and maintenance of the Mumbai airport. While 50.50% of the shareholding was with the GVK Airport Holdings Limited, 26% was with the AAI and the rest with foreign entities.

On April 4, 2006, the AAI had entered into an agreement with MIAL for the development works at the Mumbai airport.

It is alleged that funds were siphoned off by showing execution of bogus work contracts pertaining to the development of about 200 acres of land parcel around the airport, which was also meant to ensure revenue generation.

The work contracts, purportedly with several private firms, were allegedly never executed.

According to the FIR, the reserve or surplus funds to the tune of ₹395 crore were also allegedly diverted for financing group companies. Inflated expenditures of MIAL and under-reporting of its revenue earnings were also shown.

In addition, the accused caused “unquantified” loss to the AAI, the FIR said.

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Printable version | Aug 10, 2020 5:53:17 AM | https://www.thehindu.com/news/national/cbi-books-gvk-group-chief-and-others-for-corruption-in-development-funds-for-mumbai-airport/article31966776.ece

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