CBI searches GVK premises in Mumbai, Hyderabad

MUMBAI: The CBI carried out searches at the premises of GVK Group companies in Mumbai and Hyderabad on Wednesday after registering a case of cheating and forgery against the group, its chairman G Venkata Krishna Reddy, and Mumbai International Airport Ltd (MIAL) MD Sanjay Reddy, among others, for wrongful gain of Rs 705 crore to themselves and a loss to the public exchequer in the period 2012-2018.
The CBI has alleged that the promoters of GVK Group, in connivance with unknown officials of the Airports Authority of India (AAI), committed fraud that caused the loss. The agency alleged the accused siphoned funds meant for development of Mumbai airport by showing bogus work contracts, misusing the reserve fund, inflating expenditure and underreporting earnings.
MIAL is a joint venture company formed in April 2006, where GVK Airport Holdings holds 50.5% shareholding, AAI 26%, and the rest is with foreign entities. MIAL was given the task of operational management and maintenance of city airport. TOI in its late edition on Thursday had reported on the CBI case.
An MIAL spokesperson said, "MIAL is surprised to note the registration of a 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."
CBI sources declined to disclose details on the premises searched but claimed to have collected documents along with other material for examination. A CBI source said they would call the accused for recording statements after scrutinising the material collected.
MIAL has been accused of preparing bogus work contracts for development of 200 acres of AAI land near the airport in 2017 and siphoning off Rs 310 crore. MIAL has transferred the amount to nine companies. These companies also availed input tax credit with the help of forged invoices, the FIR said. Beginning 2012, the promoters misused Rs 395 crore surplus funds of MIAL, the FIR said.
GVK Reddy was awarded the Padma Bhushan in 2011. GVK Group had entered into the airport project in 2006.