Mumbai Airport Scam: CBI Files Case Against GVK Group Chairman Krishna Reddy, Son For Siphoning Off Funds Worth Rs 705 Cr

The agency has alleged that the group siphoned funds showing the execution of bogus work contracts to about 9 companies in 2017-18.

India   |   2 July 2020 12:13 PM GMT
Writer : Navya Singh | Editor : Shweta Kothari | Creatives : Abhishek M
Mumbai Airport Scam: CBI Files Case Against GVK Group Chairman Krishna Reddy, Son For Siphoning Off Funds Worth Rs 705 Cr

Image Credit: Wikimedia

The Central Bureau of Investigation (CBI) on Wednesday, July 1, 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 among others for alleged irregularities worth Rs 705 crore in the operations of the airport.

On April 4, 2006 Airport Authority of India (AAI) signed an agreement with Mumbai International Airport Ltd (MIAL) for modernisation, upkeep, operation and maintenance of Mumbai airport.

It is alleged that promoters of GVK group with their executives and officials of AAI were involved in siphoning of funds using multiple ways. The agency has alleged that they siphoned funds showing the execution of bogus work contracts to about 9 companies in 2017-18 causing a loss worth Rs 310 crore.

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

The agency has alleged that the group increased expenditure figures of MIAL by showing payments to employees at their headquarters and group companies who were not involved in the functioning of MIAL, causing a revenue loss to AAI.

The promoters allegedly under-reported revenue earnings of MIAL by signing contracts with related parties and meeting their personal and family expenses using MIAL funds, it said.

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