CBI registers case against GVK Group for allegedly siphoning off Rs 705 crore from MIAL
Mumbai: The Central Bureau of Investigation(CBI) has registered a case against Venkata Krishna Reddy Gunupati, chairman of the GVK Group of companies and his son GV Sanjay Reddy, managing director of Mumbai Airport for siphoning off Rs 705 crore from Mumbai International Airport Ltd. (MIAL) on Wednesday.
MIAL is a joint venture between GVK Group Airports Authority of India and a few foreign companies for the maintenance and degradation of Mumbai Airport.
On April 4 2006, An Agreement was signed that MIAL schools share 38.7% of their revenue with the AAI as annual fees. MIAL earnings were for modernization, upkeep, operation and maintenance of Mumbai airport.
It is alleged that the promoters of GVK group in MIAL inconvenienced their executive and unidentified officials of AAI siphoned off the funds using various means.
The CBI agency have alleged that the funds were siphoned off using bogus work contracts, inflating the company’s expenses, misusing MIAL surplus funds and under reporting revenue.
In 2017- 18 , Causing a loss of Rs 310 crore to AAI, MIAL entered into bogus work contracts to 9 companies.
The CBI has alleged that the promoters of GVK group allegedly misused reserve funds of MIAL to the tune of Rs 395 crore to finance their group companies.
GVK Group by entering into the agreements he also used MIAL’s surplus with related parties and meeting their personal and family expenses using MIAL funds.