MUMBAI: The Enforcement Directorate (ED) registered a money laundering case on Tuesday against GVK Group promoters along with others in connection with fraudulent transaction between Mumbai International Airport Ltd (MIAL) and other companies for development of Mumbai airport.
The ED will investigate the financial transaction between MIAL and other companies. It has registered money laundering case, based on the CBI’s (Central Bureau of Investigation) case against the GVK group along with others for fraudulent dealing that caused Rs 705 crore loss to the public exchequer during the period 2012-2018.
Earlier, the CBI had conducted search operations at the premises of GVK Group companies in Mumbai and Hyderabad after registering a case of cheating and forgery against the group, its chairman G Venkata Krishna Reddy, and MIAL MD Sanjay Reddy, among others, for wrongful gain of Rs 705 crore to themselves and a loss to the public exchequer.
The CBI has alleged that the promoters of GVK Group, in connivance with unknown officials of the Airports Authority of India (AAI), government entity, committed fraud that caused the loss. The agency also alleged that the accused siphoned funds meant for development of Mumbai airport by showing bogus work contracts, misusing the reserve fund, inflating expenditure and underreporting earnings.
MIAL is a joint venture company formed in April 2006, where GVK Airport Holdings holds 50.5% shareholding, AAI 26%, and the rest is with foreign entities. MIAL was given the task of operational management and maintenance of city airport.
MIAL has been accused of preparing bogus work contracts for development of 200 acres of AAI land near the airport in 2017 and siphoning off Rs 310 crore. MIAL has transferred the amount to nine companies. These companies also availed input tax credit with the help of forged invoices, the FIR said. Beginning 2012, the promoters misused Rs 395 crore surplus funds of MIAL.