Rs 705 Crore Mumbai Airport Scam – CBI Books GVK Group Chairman GVK Reddy & Son

A Rs 705 crore scam, related to Mumbai International Airport has come to light. A joint authority between Airport Authority of India (AAI) and a private company GVK Airports Holdings, was formed for upgradation and maintenance of Mumbai airport. GVK Group’s Chairman GVK Reddy, and his son and MD of the group GV Reddy, have been booked by the CBI.

Rs 705 Crore Mumbai Airport Scam - CBI Books GVK Group Chairman GVK Reddy & Son
Rs 705 Crore Mumbai Airport Scam – CBI Books GVK Group Chairman GVK Reddy & Son

The CBI has alleged irregularities to the tune of Rs 705 crore in the running of the airport against the GVK Group. The AAI entered into an agreement with Mumbai International Airport Ltd (MIAL) in 2006. It is alleged that the promoters of GVK Group connived with unidentified AAI officials to siphon off funds using different tactics.

The CBI has alleged that GVK siphoned funds by showing the execution of bogus work contracts to nine companies in 2017-18. According to the CBI, this caused a loss of Rs 310 crore to AAI. The CBI also alleged that GVK misused reserve funds of MIAL to the tune of Rs 395 crore.

These siphoned funds were used by GVK to finance their group companies. The CBI said that GVK inflated expenditures of MIAL by showing payments to employees and group companies that were not involved in running MIAL. The promoters allegedly underreported revenue of MIAL by meeting their personal and family expenses using MIAL funds.

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