ED books Hyderabad-based GVK group for money laundering

By Newsmeter Network  Published on  7 July 2020 5:30 PM GMT
ED books Hyderabad-based GVK group for money laundering

Hyderabad: The sleuths of Enforcement Directorate have registered a case against Hyderabad-based GVK group and officials of Mumbai International Private Limited (MIAL) under money laundering . The investigators to probe into the alleged Rs 750 Crore fraud.

Earlier, The Central Bureau of Investigation had booked a case against GVK group's chairman G Venkata Krishna Reddy and his son G Sanjay Reddy, for allegedly siphoning off Rs 705 Crore. The funds were meant for the development of the Mumbai International Airport. A case under forgery, cheating has also been booked against 9 other companies for their connivance, officials said.

Investigators found irregularities to a tune of Rs 705 Cr. It revealed that G Sanjay Krishna Reddy, the managing director of Mumbai International Airport Ltd in connivance with unknown AAI staff running the airport, inflated expenditure to benefit them.

In 2006, the Airport Authority of India and GVK Airports Holdings Limited formed a joint venture under Public-Private Partnership (PPP) for upgradation and maintenance of the Mumbai airport. This led to the setting up of Mumbai International Airport Limited (MIAL). The job of modernization, upkeep, operation, and maintenance of MIAL was accorded to promoters of GVK group.

Sources informed the CBI that from 2012 onwards, the GVK group with criminal intimidation cause loss to AAI. It used surplus funds of MIAL to a tune of Rs 395 crore to finance their own group of companies. GVK created forged board meeting resolution with MIAL authorizing to keep the reserve as Fixed Deposit Receipt (FDRs) with Public Sector Undertaking banks in Hyderabad. Further, the group raised loans against these FDR's and used these funds for the benefit of their Hyderabad based GVK group companies at the expense of MIAL.

The CBI has booked a case under section 120 B, 420, 467, 468, 471 of IPC and 13 (2) r/w 13 (1) (d) of Prevention of Corruption Act.

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