CBI FIR against GVK Reddy, others in connection with irregularities of over Rs 800 cr in Mumbai Airport development

Mumbai (Maharashtra) [India], July 2 (ANI): Central Bureau of Investigation (CBI) has registered an FIR against Dr GVK Reddy, Chairman of GVK Group, Mumbai International Airport, officials of Airport Authority of India and others, for alleged irregularities worth more than Rs 800 crores in the development of Mumbai Airport.
According to the FIR, the accused were involved in siphoning off the funds in the name of development of the Mumbai airport from 2012 to 2018.
"From 2012 onwards, the promoters of GVK Group with criminal intention to cause loss to AAI, used the surplus funds of MIAL to the tune of Rs 395 crore to finance their other group companies. They fraudulently created forged Board Meeting Resolution of MIAL authorising to keep the reserve surplus funds of MIAL as FDRs with PSU banks at Hyderabad MIAL is Mumbai based company but they chose to deposits the funds in the form of FDRs with Hyderabad based branch of Bank of India," CBI FIR read.
Eventually, the CBI has further claimed to have found that the GVK group was involved in siphoning the funds by showing the execution of bogus work contracts.
"Around 200 acres of undeveloped and parcel in Mumbai, around the Airport, was given by AAI for development and generating revenue. The MAL entered into fake/bogus work contracts during 2017-2018 with many private limited companies which were used for transferring the funds to them but these contracts have never been executed on ground and the transactions were only on papers," the CBI FIR read.
"Using this modus operandi, Rs 310 Crore have been fraudulently siphoned off which resulted in the wrongful loss to AAI and corresponding wrongful gain to themselves. These nine companies have also availed fake Input Tax Credit (ITC) and caused further revenue loss to the Government Exchequer based fake invoices issued," it added. (ANI)