Mumbai: CBI investigation reveal irregularities in the development of Mumbai International Airport

ST Staff
Thursday, 2 July 2020

The investigation agency said in its FIR that the managing group of the airport had "siphoned" funds by executing bogus work contracts while reporting its revenues and had increased the expenses. CBI's FIR also adds a quotient of the company misusing the reserves. 

Mumbai: In the view of alleged irregularities of over Rs 705 crore in the development of Mumbai airport, the Central Bureau of Investigation (CBI) has filed a case against GVK group. The company runs the Mumbai international airport and the case has been registered its chairman Dr G V K Reddy and his son G V Sanjay Reddy. A case has also been registered against unknown public servants. 

Mumbai International Airport is a venture between GVK group and Airport Authority of India along with some foreign entities. 

The investigation agency said in its FIR that the managing group of the airport had "siphoned" funds by executing bogus work contracts while reporting its revenues and had increased the expenses. CBI's FIR also adds a quotient of the company misusing the reserves. 

According to the report, Mumbai International Airport Ltd. (MIAL) had also allegedly entered fake real estate contract amounting to Rs 310 crore. These work contracts were entered with nine firms in 2017-18. According to CBI, these firms had also claimed a fake tax credit for the contracts from the government. 

Adding to this CBI also claims that the managing authority since 2012 has used around Rs 395 crore surplus MIAL funds to fund other companies under GVK group. 

The investigation agency also suggests that GVK group has "assigned premium retail area of Mumbai airport" to businesses run by family or relatives at "exorbitantly low rates" which has reduced the revenue of MIAL. 

The CBI also alleges that the management group has "embezzled" at least Rs 100 crore by showing inflated expenses at the airport. 

According to their investigations, Rockline Solutions Pvt Ltd and International Airport Hotels and Resorts Pvt Ltd companies benefitted from low price retail spaces. 

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