Home >News >India >CBI books GVK Group promoters for siphoning off funds at Mumbai airport

New Delhi: The Central Bureau of Investigation (CBI) has booked Venkata Krishna Reddy Gunupati, the chairman of the GVK Group of Companies and his son G V Sanjay Reddy, managing director of Mumbai International Airport Ltd (MIAL), and several others for siphoning of funds to the tune of 705 crore, according to a first information report filed by the Mumbai police last week.

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.

The CBI has alleged that the GVK Group and its promoters siphoned off 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, thus causing a loss of 310 crore to the exchequer.

The promoters of GVK Group also allegedly misused reserve funds of MIAL to the tune of 395 crore to finance their group companies, the CBI has alleged.

The agency alleged that the promoters of GVK Group embezzled huge funds of MIAL by resorting to inflating expenditure at the joint venture company.

The FIR also accused the promoters of GVK Group of under reporting revenue earnings of MIAL by entering into related party contracts, meeting their personal and family expenses using funds belonging to the airport operator.

The CBI has also alleged that the GVK 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.

A copy of the FIR has been reviewed by Mint.

When contacted a spokesperson for Mumbai International Airport Ltd (MIAL) said, that it is surprised to note the registration of case by CBI against MIAL and others.

"MIAL would have provided every assistance had the agency sought explanation or any document even if a preliminary enquiry had been initiated. MIAL is a transparent and responsible corporate entity which is committed to co-operate with the agency in its investigation to arrive at the truth," it added.

Nine other private companies and unidentified officials of AAI, besides GVK Airport Holding Ltd, MIAL, GVK Group promoter Venkata Krishna Reddy Gunupati, his son G V Sanjay Reddy, managing director of Mumbai International Airport Ltd (MIAL), have been booked by CBI for alleged financial irregularities and siphoning off funds.

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