New Delhi: The Central Bureau of Investigation has charged Gunupati Venkata Krishna Reddy, the chairman of GVK group of companies and his son Gunupati Venkata Sanjay Reddy, the Managing Director of Mumbai International Airport Ltd, among others for an alleged scam of Rs 705 crore in running of the airport, officials said.
“All have been accused of causing wrongful gain of over 705 crore to themselves and causing a loss to the public exchequer between 2012-2018,” reads the First Information Report.
Airports Authority of India (AAI) limited and GVK Airports Holdings Limited had set up a joint venture named Mumbai International Airport Ltd (MIAL) for up gradation and maintenance of Mumbai Airport.
An agreement was signed between AAI and MIAL, on April 4, 2006 for modernization, sustenance, and maintenance of Mumbai airport.
It is alleged that promoters of GVK group in conspiracy with their executives and unidentified officials of AAI have drawn out funds using different ways, said officials.
The agency has alleged that they drew out funds showing execution of bogus work contracts to nine companies in 2017-18 causing a loss of Rs 310 crore.
“The promoters of the GVK Group of Companies with criminal intention to cause loss to AAI, used the surplus funds of MIAL to the tune of 395 crore to finance their other group companies between 2012 and 2018,” CBI alleged.