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CBI Books GVK Group Chairman, Son for 'Siphoning' Funds From Mumbai Airport

The agency has reportedly identified irregularities to the tune of Rs 705 crore in running the airport.
The Chhatrapati Shivaji International Airport, Mumbai. Photo: Reuters

New Delhi: The CBI has booked Venkata Krishna Reddy Gunupati, chairman of the GVK Group of Companies and his son G.V. Sanjay Reddy, managing director of Mumbai International Airport Ltd (MIAL), among others for alleged irregularities to the tune of Rs 705 crore in running the airport, officials said.

The Airports Authority of India (AAI) Ltd had formed a joint venture with GVK Airports Holdings Limited, promoted by the GVK Group under a public-private partnership firm called the MIAL to upgrade and maintain the Mumbai airport. The parties entered into an agreement on April 4, 2006.

It is alleged that promoters of the GVK Group, in connivance with their executives and unidentified officials of the AAI resorted to siphoning off funds using different ways, officials said on Wednesday.

The agency has alleged that they siphoned off funds showing the execution of bogus work contracts to nine companies in 2017-18, causing a loss of Rs 310 crore.

The promoters of the 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 inflated the expenditure figures of MIAL by showing payments to employees at their headquarters and group companies who were not involved in the running of MIAL, causing a revenue loss to AAI, they said.

The promoters allegedly underreported revenue earnings of MIAL by entering into contracts with related parties and meeting their personal and family expenses using MIAL funds, they said.

Besides the GVK Group’s chairman, the CBI has also booked his son G.V. Sanjay Reddy, nine other private companies and unidentified officials of AAI, they said.

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