GVK Group of Companies is now is a major fix while Central Bureau of Investigation (CBI) has registered a case against its chairman Dr GVK Reddy, his son GV Sanjay Reddy. Under alleged irregularities at a tune of Rs 700 crores, GVK along with 13 other companies are now booked under a CBI case for siphoning crores for the up-gradation and maintenance of the Mumbai International Airport. Sources also confirmed that CBI even carried out searches after registering the FIR.
According to the accusations made by CBI by GVK siphoned off the amount by showing the execution of bogus work contracts with nine other private companies. Also, the promoters of GVK group allegedly misused reserve funds of MIAL to the tune of Rs 395 crore to finance their group companies, added CBI. The agency further alleged that the GVK group inflated expenditure figures of the Mumbai airport, causing a revenue loss to the Airports Authority of India.
CBI has registered a case against them for criminal conspiracy, cheating under the Prevention of Corruption Act, 1988. While MIAL is a joint venture of the GVK Group, Airport Authority of India and a few foreign entities, GVK owned 50.5 per cent of the shares and 26 per cent was with Airport Authority of India. The agreement signed between AAI and MIAL in 2006 stipulates that MIAL shall run the Mumbai airport and they will have to share 38.7 per cent of their revenue with the AAI as annual fees.