ED issues money laundering charges against GVK

In recent developments, the Enforcement Directorate on Tuesday issued money-laundering charges against the promoters of the GVK group of companies.

ED issues money laundering charges against GVK
SHARES

In recent developments, the Enforcement Directorate on Tuesday issued money-laundering charges against the promoters of the GVK group of companies, officials of Mumbai International Airport Ltd (MIAL), and a few other entities in connection with the alleged ₹705-crore Mumbai airport scam.

According to sources, the enforcement case information report was filed under section 3 of the Prevention of Money Laundering Act. This section usually deals with concealing a crime where the accused might be guilty of money laundering.

This comes after the Central Bureau of Investigation had booked Venkata Krishna Reddy Gunupati, the chairman of the GVK Group of Companies and his son G V Sanjay Reddy for alleged irregularities pertaining to ₹705-crore. The CBI had also stated that the GVK group assembled this scam with their immediate family members, relatives and employees where 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 had entered into a partnership with a company which was owned by relatives, family members and employees, which also used up funds of the MIAL, further booking a 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. Currently, the agency has estimated the loss to be around ₹705 crores, however, officials had earlier 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.

The anti-money laundering probe is therefore slated to start soon where accounts of the companies and the transfer of the funds will be fully examined. There are also powers to attach properties during the investigation.

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