Categories: Business

CBI files case against Dr. GVK Reddy and son, chairman of GVK group, charges of rigging of Rs 800 crore


CBI case against GVK group chairman, son for siphoning off Rs 800 crore from Mumbai airport

new Delhi. The Central Bureau of Investigation (CBI) has registered a case against Dr. GVK Reddy, Chairman of GVK Group and his son GV Sanjay Reddy. The CBI has alleged that both of them have cheated Mumbai International Airport (MIAL) to the tune of about Rs 800 crore. GV Sanjay Reddy is the Vice Chairman of the GVK Group and the Managing Director of MIAL. GVK Reddy is a director on the MIAL board.

MIAL is a joint venture. It is held by GVK Group, Airport Authority of India and some foreign companies. As per the agreement reached in 2006, MIAL will pay 38.7 percent of its revenue to the Airport Authority of India as an annual fee. The remaining revenue of MIAL will be used for the modernization, operation and maintenance of Mumbai Airport.

The FIR states that the promoters of the GVK Group have rigged the funds with their employees at MIAL and unknown employees of the Airport Authority of India. It is alleged in the FIR that this rigging has been done through fake work contracts. MIAL's surplus fund was misused and the company's expenses were overstated.

In 2017-18, MIAL awarded fake work contracts to 9 companies, resulting in a loss of Rs 310 crore to the Airport Authority of India. The FIR stated that the GVK Group had been misappropriating MIAL's reserve funds since 2012 to finance its group companies, causing a loss of Rs 395 crore.

The GVK Group misused MIAL's Surplus Fund by compromising with its family members, relatives and employees companies. The group made train, air travel tickets and hotel bookings for themselves and for GVK employees who were not related to MIAL.

This post was published on July 2, 2020 2:00 pm

Content Team

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