Home >News >India >Enforcement Directorate raids homes, offices of GVK promoters

The Enforcement Directorate (ED) on Tuesday conducted searches at the homes of the promoters and offices of GVK group in Mumbai and Hyderabad in connection with a money-laundering probe launched in the first week of July.

“A total of nine locations have been raided across Mumbai and Hyderabad in connection with 705 crore Mumbai airport scam," said an ED official. A spokesperson for GVK declined to comment.

The money-laundering probe is based on a Central Bureau of Investigation case registered last month.

The case is against Venkata Krishna Reddy Gunupati, chairman of the GVK Group, his son G.V. Sanjay Reddy, managing director of Mumbai International Airport Ltd (MIAL), and nine other private companies, for alleged financial irregularities to the tune of 705 crore from the funds of 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 in Mumbai.

The ED case alleges that some of these funds were diverted, siphoned off and concealed. These are the first set of searches by ED. CBI had conducted searches in June. As per the CBI filings, GVK group misused funds meant for the development of 200 acres of land 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.

Additionally, 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 in the first information report. “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," CBI had said.

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