March 4, 2021

GVK Reddy: CBI books GVK Group chairman GVK Reddy, son GV Sanjay Reddy for siphoning off Rs 705 crore from MIAL

NEW DELHI: The CBI has booked Venkata Krishna Reddy Gunupati, the chairman of the GVK Group of Firms and his son G V Sanjay Reddy, Managing Director of Mumbai Worldwide Airport Ltd amongst others for alleged irregularities to the tune of Rs 705 crore in operating of the airport, officers mentioned on Wednesday.

Airport Authority of India Ltd had shaped a Three way partnership with GVK Airports Holdings Restricted, promoted by GVK group underneath public non-public partnership agency Mumbai Worldwide Airport Ltd for upgradation and upkeep of Mumbai Airport.

On April 4, 2006 AAI entered into an settlement with MIAL for modernisation, maintenance, operation and upkeep of Mumbai airport with MIAL.

It’s alleged that promoters of GVK group in MIAL in connivance with their executives and unidentified officers of AAI resorted to siphoning of funds utilizing other ways, officers mentioned.

The company has alleged that they siphoned funds exhibiting execution of bogus work contracts to 9 firms in 2017-18 inflicting a lack of Rs 310 crore, they mentioned.

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

The company has alleged that the group inflated expenditure figures of MIAL by exhibiting funds to staff at their headquarters and group firms who weren’t concerned within the operating of MIAL inflicting a income loss to AAI, they mentioned.

The promoters allegedly underneath reported income earnings of MIAL by coming into into contracts with associated events and assembly their private and family bills utilizing MIAL funds, they mentioned.

In addition to GVK group chairman, the CBI has additionally booked his son GV Sanjay Reddy who’s Managing Director of MIAL, firms MIAL, GVK Airport Holdings Ltd, 9 different non-public firms and unidentified officers of AAI, they mentioned.