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Mumbai Airport Scam: GVK Group Chairman, Son Booked For Siphoning Off Rs 705 Crores

GVK Airport Holdings Limited, Airport Authority of India (AAI) and some foreign companies formed Mumbai International Airport Limited (MIAL) in the joint venture.

 

Mumbai| The CBI has registered an FIR against GVK Group of Companies Chairman G Venkata Krishna Reddy and his son GV Sanjay Reddy. The action was taken on charges of tampering with the development of Mumbai International Airport worth Rs 705 crore. The FIR also names some officers of the Airport Authority of India, MIL, GVK Airport Holdings Limited and 9 other private companies.

GVK Airport Holdings Limited, Airport Authority of India (AAI) and some foreign companies formed Mumbai International Airport Limited (MIAL) in the joint venture. GVK holds 50.5% of its shares and 26% is with AAI. Reddy is a Joint Venture Chairman and GV Sanjay Reddy is MD.

According to the FIR, the alleged scam in the Mumbai Airport development took place between 2012 and 2018. GVK Group invested Rs 395 crore from MIAL’s surplus fund in its other companies. Despite MIAL being Mumbai based, Surplus Fund was kept in Hyderabad banks. A fake proposal of a board meeting was prepared for this rigging. On the other hand, fraudulent transactions worth Rs 310 crore were done by showing fake contracts.

MIAL gives 38.7% of annual revenue to AAI
An agreement was signed between AAI and MIAL in 2006 that MIAL would run Mumbai Airport and pay 38.7% of the annual revenue will be given to AAI as fees. The remaining amount will be spent in the airport’s modernization, operation and maintenance.

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