ED Slaps Money Laundering Case Against GVK Group, MIAL In Rs 705 Cr Mumbai Airport Scam

The case registered by ED is based on Central Bureau of Investigation (CBI) case which was filed last month against the same entities in alleged siphoning off Rs 705 crores from MIAL funds.

(File Photo/ AFP)

New Delhi: The Enforcement Directorate on Tuesday registered a money laundering case against Chairman and promoters of GVK Group, the Mumbai International Airport Limited (MIAL) and few other entities in connection with alleged irregularities worth Rs 705 crore in running the Mumbai Airport. According to the reports, the enforcement case information report (equivalent of a police FIR) filled by the investigating agency under the Prevention of Money Laundering Act names GVK Group chairman Dr Venkata Krishna Reddy Gunupati, his son G V Sanjay Reddy, managing director and other officials of MIAL and several other. The case registered by ED is based on Central Bureau of Investigation (CBI) case which was filed last month against the same entities in alleged siphoning off Rs 705 crores from MIAL funds by showing inflated expense, under-reporting revenues and fudging of few other records. It is a joint venture under the public private partnership between GVK Airport Holdings Limited and the Airports Authority of India (AAI) besides other investors. According to a report by news agency PTI, the CBI in its chargesheet booked key official of GVK Group, MIAL and nine other private companies for involving in camouflaging the inflated data through sham deals and unidentified AAI officials. The news agency report mentioned that in April 2006, the Airports Authority of India  signed an agreement with the Mumbai International Airport Limited for modernization, up gradation, operation and maintenance of Mumbai airport as part of joint venture called –MIAL. As per the agreement, MIAL was to share about 38.7 per cent of the revenue of their revenue while the government authority would have the first right on the revenue. CBI in its FIR has alleged that the accused entities in connivance with their executives and unidentified AAI officials, resorted to siphoning off funds using different ways. The investigating agency even conducted raids at two locations - Mumbai and Hyderabad - after filing the case last month.