CBI Case Against GVK Group that Runs Mumbai Airport Over Alleged Rs 705 Crore Scam

The Central Bureau of Investigation has registered a case against Dr G V K Reddy, Chairman of GVK group, the company that runs the Mumbai airport – MIAL (Mumbai International Airport Limited), and others for alleged irregularities worth ?705 crore in the development of Mumbai airport.

MIAL is a joint venture between AAI (Airports Authority of India), GVK and foreign entities. The AAI entered an agreement in 2006 for modernization and up gradation, operation and maintenance of Mumbai airport as part of joint venture called –MIAL.

The agreement stated that the revenue share has to be given first to AAI and then the balance earnings of MIAL shall be used for modernisation and upgradation, operation and maintenance and the essence of the agreement was to make it a world class facility.

CBI FIR alleges that the GVK group connived with their family members, relatives and employees to give undue monetary advantage to them and to cause corresponding unlawful loss to AAI.

As part of the conspiracy, they assigned the premium retail areas of Mumbai airport to their family members at exorbitantly low rates there- by reducing the revenue of MIAL.

The GVK group even used funds of MIAL by entering into agreements with a company owned by family members, relatives, employees to book train, air travel tickets and hotel booking for personal as well as group employees of GVK who were not connected to MIAL.

The agency has named total 13 persons and companies as accused as well as unknown public servants.

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