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Mumbai: CBI files case against the GVK Group

The CBI has filed a case against the GVK Group for alleged irregularities pertaining to ₹705 crores for running of the Mumbai airport.

Mumbai: CBI files case against the GVK Group
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The Central Bureau of Investigation has booked Venkata Krishna Reddy Gunupati, the chairman of the GVK Group of Companies and his son G V Sanjay Reddy, Managing Director of Mumbai International Airport Ltd for alleged irregularities pertaining to ₹705 crores for running of the airport in Mumbai.

The agency has registered a case against the father-son duo for criminal conspiracy, cheating under the Prevention of Corruption Act, 1988. The Airport Authority of India had earlier formed a joint venture with GVK Airports Holdings Limited, promoted by GVK group under public-private partnership firm Mumbai International Airport Ltd for enhancement and renovation of the airport in Mumbai.

The FIR by the Central Bureau of Investigation further alleges that the GVK group assembled this scam with their immediate family members, relatives and employees. They assigned the premium retail areas of Mumbai airport to their family members at rates that are extremely low which has led to the reduction in the revenue of the MIAL on account of rentals and sales.

The GVK group has also used funds of the MIAL by entering into a partnership with a company which was owned by relatives, family members and employees in order to book train, air travel tickets and hotel booking for personal interest as well as for group employees of the GVK who were not related to the MIAL.

The CBI further added that the AAI officials were aware of all the irregularities, however, they did not take any action, turning a blind eye, and letting these practices of complete misuse of funds for personal gains of the MIAL to continue.

Although, at the moment, the agency has estimated the loss to be around ₹705 crores, however, officials have allegedly claimed that the actual figure could be much higher and may go over a few more hundred crores. This has come as a shock to many with the GVK being a respectable company.

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