How Hyderabad-based GVK group misused AAI funds
By Coreena Suares Published on 2 July 2020 7:32 AM GMT
Hyderabad: The Central Bureau of Investigation has booked a case against Hyderabad based GVK group's chairman's G Venkata Krishna Reddy and his son G Sanjay Reddy for allegedly siphoning off Rs 705 Crore. The funds were meant for development and maintenance of the Mumbai International Airport. A case under forgery, cheating has also been booked against 9 other companies for their connivance with promoters GVK, officials said.
In 2006, GVK entered into a joint venture with Airport Authority of India. Under the private public partnership, GVK was allocated the job to upkeep and maintain the Mumbai International Airport. This led to setting up of Mumbai International Airport Limited. The group is alleged of misusing funds of AAI for personal benefit.
The lid blew of when CBI was informed that promoters of GVK group inflated expenditure bills in connection with MIAL. "They ( GVK) shifted the staffs of the head offices of GVK group at Hyderabad and the employees of their group companies, on the pay rolls of MIAL, Mumbai. This was in contravention to the agreement. The employees who had no connection with MIAL were paid salaries causing revenue loss to AAI" the FIR mentioned.
Further, Investigator found premium retail area in the Mumbai airport were allocated to companies owned by GVK's family members, employees at exorbitantly low rates thereby reducing the revenue of MIAL. The companies who bagged the offers include, M/s Rockline Solutions Private limited and M/s International Airport Hotels & resorts Pvt limited.
The CBI said, " Promoters of GVK group abused the agreement by entering into other terms with a company owned by family/ employees to book the train/air travel and hotel tickets. One such company is Orbit travel and tours private limited. The fraud was done in connivance with AAI staffers", CBI said.
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 against the the group's Chairman, his son and 9 other companies.
How the money meant for development of Airport was siphoned off ?
CBI's investigation found that, around 200 acres of underdeveloped land parcel in Mumbai, located around the airport was given to MIAL by AAI for development and revenue generation. The MIAL entered into a bogus work contract during 2017-18 with Aishwaryagiri Construction private limited, Kotia Enterprises limited, SBK trade & infrastructure project (India) Limited, M/s Richa Industries Limited, M/s Nice project limited and Aditi Infrabuild and services limited. The contract was allocated on the pretext of real estate development.
MIAL transferred the funds to them but these contracts have never been executed on ground. "Using bogus operandi Rs 310 Crore have been fraudulently siphoned off. The nine company have availed fake input tax credit (ITC). A case has been filed against the nine. The CBI is also investigating into several other fake invoices raised by MIAL.
