The Central Bureau of Investigation has registered a case against G Venkata Krishna Reddy, the chairperson of the GVK Group of Companies, for allegedly siphoning off Rs 705 crore from the Mumbai International Airport, PTI reported on Thursday. The case also names his son GV Sanjay Reddy, who is the managing director of the Mumbai airport, and nine other private companies and unidentified officials of the Airports Authority of India.
The Mumbai International Airport is a joint venture between Airports Authority of India and the GVK Airports Holdings Limited, which is promoted by the GVK group, and a few other foreign entities. The two parties entered into the agreement in 2006 for the modernisation, upkeep and maintenance of the airport. GVK owned 50.5% of the shares and 26% was with AAI, according to NDTV.
In the first information report, the CBI alleged that the accused had siphoned off Rs 310 crore by showing execution of bogus work contracts with nine other private companies. The promoters of GVK group allegedly misused reserve funds of MIAL to the tune of Rs 395 crore to finance their group companies, it added. The promoters allegedly also underreported revenue earnings of the Mumbai airport by entering into contracts with related parties.
The agency further alleged that the GVK group inflated expenditure figures of the Mumbai airport by showing payments to employees at their headquarters and to other group companies who were not involved in the running of the airport. This caused a revenue loss to the Airports Authority of India. they added.