Offices and Homes of GVK Group Promoters Searched by the ED in Mumbai and Hyderabad

Earlier in July, the ED registered a formal FIR (First Information Report) against the GVK Group as well as its chairman GVK Reddy and his son GV Sanjeev Reddy.

Offices and Homes of GVK Group Promoters Searched by the ED in Mumbai and Hyderabad
SHARES

In connection with a money laundering case and irregularities in the construction and development of the Mumbai International Airport, the Enforcement Directorate (ED) conducted searches at the offices of GVK Group. 

Separately, the homes of its promoters were also searched in Mumbai and Hyderabad. The Mumbai International Airport was developed under a joint venture by GVK Group, the Airports Authority of India, as well as a handful of foreign investors.  

Earlier in July, the ED registered a formal FIR (First Information Report) against the GVK Group as well as its chairman GVK Reddy and his son GV Sanjeev Reddy. This action was taken after an FIR was filed by the CBI (Central Bureau of Investigation) against the GVK Group on June 27. 

Read - CBI Probes 7 Contractors In Mumbai International Airport Fraud Case

As per the CBI, there were irregularities amounting to more than Rs 705 crore in developing the Mumbai Airport. The case was filed under Section 3 of the Prevention of Money Laundering Act (PMLA). The FIR also added that promoters belonging to GVK Group “siphoned” off funds by offering fake work contracts, misusing its reserves, under-reporting its revenues, as well as inflating its expenses. 

It is said the MIAL (Mumbai International Airport Limited) offered a total of nine fake real estate contracts worth Rs 310 crore that were never seen through. It is also said that premium retail areas of the airport have been assigned to companies that are run by family members, relatives, or employees of GVK. Since these firms were provided with the spaces at low-cost, the FIR mentions that it has consequently impacted the revenue of MIAL for the promoters’ personal gain. 

Further investigations are currently pending, and more details are expected to be uncovered as far as financial irregularities are concerned. MIAL is also known as the Chhatrapati Shivaji Maharaj International Airport and is one of the busiest airports in the state. 

Also read - Mumbai Airport Has Seen Over 2 Lakh Arrivals And Departures Combined Since May 25

RELATED TOPICS