The Enforcement Directorate (ED) on Tuesday registered a money laundering cases against the GVK Group, Mumbai International Airport Ltd (MIAL) to probe alleged irregularities to the tune ₹705 crore in running the Mumbai airport, an official said.
The probe agency registered the case after studying the first information report (FIR) filed by the Central Bureau of Investigation (CBI) against Venkata Krishna Reddy Gunupati, the chairman of the GVK Group of Companies, his son G V Sanjay Reddy, managing director ofMIAL, and nine other private companies, for siphoning off ₹705 crore from the funds of the MIAL.
MIAL is a joint venture between the GVK Group, state-owned Airports Authority of India (AAI), and foreign partners Bidvest and ACSA, which operates the country's second busiest airport at Mumbai.
"ED will probe if genuine funds were laundered to amass personal assets by illegal routing of funds," said the ED official quoted above.
"We have not received any notice from the ED," a GVK spokesperson told Mint. MIAL spokesperson was not immediately available for comments
GVK group misused the funds meant for the development of 200 acres of land parcel in Mumbai by showing execution of bogus work contracts to nine companies in 2017-18, leading to a loss of ₹310 crore to the exchequer, according to the FIR filed by the CBI.
The promoters of GVK Group also misused reserve funds of MIAL to the tune of ₹395 crore to finance their group companies, the CBI alleged, adding that the company 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.
The CBI has already carried out raids in Mumbai and Hyderabad in this regard.