The Central Bureau of Investigation (CBI) has filed a case against GVK Group – a company that runs the Mumbai airport – its chairman Dr GVK Reddy, his son GV Sanjay Reddy and other public servants for alleged creating irregularities of over Rs 705 crore in the development of Mumbai international airport.
In an FIR, the CBI said the promoters of GVK Group in Mumbai International Airport Ltd (MIAL) has “siphoned” funds by executing fake work contracts, under reporting its revenues, inflating its expenses and misusing the reserves.
The FIR further said that the MIAL allegedly entered into fake work contracts pertaining to real estate development to the tune of Rs 310 crore with nine firms in 2017-18 which were never executed. These firms, the CBI claimed fake input tax credit from the government.
Apart from this, the promoters of GVK Group have used Rs 395 crore of the surplus of MIAL to fund other firms of the group. The CBI said the GVK Group in MIAL has “embezzled” at least Rs 100 crore by inflating the expenses of MIAL. The firms which got the retail space at low rates include Rockline Solutions Pvt Ltd and International Airport Hotels and Resorts Pvt Ltd.
MIAL is a joint venture between the GVK Group, Airport Authority of India and a few foreign entities.