Rediff.com  » Business » CBI books GVK chairman, son for defrauding Mumbai airport

CBI books GVK chairman, son for defrauding Mumbai airport

Source: PTI
July 02, 2020 10:41 IST
Get Rediff News in your Inbox:

The Central Bureau of Investigation has booked Venkata Krishna Reddy Gunupati, chairman of the GVK group of companies, and his son G V Sanjay Reddy, managing director of Mumbai International Airport Ltd, among others for alleged irregularities to the tune of Rs 705 crore in running of the airport, officials said. 

The Airports Authority of India (AAI) Ltd had formed a Joint Venture with GVK Airports Holdings Limited, promoted by GVK group under public private partnership firm Mumbai International Airport Ltd (MIAL) for upgradation and maintenance of the Mumbai airport. 

 

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

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

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. 

The promoters of GVK group allegedly misused the 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 the 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.

Get Rediff News in your Inbox:
Source: PTI© Copyright 2020 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
SHARE THIS STORY