CBI books GVK Group chairman Venkata Krishna Reddy, son Sanjay Reddy for siphoning off Rs 800 crore from Mumbai airport

The Central Bureau of Investigation (CBI) on Wednesday (July 1) registered a case against GVK Group of Companies chairman G Venkata Krishna Reddy and some officials of Airport Authority of India (AAI) for allegedly siphoning off Rs 800 crore in the name of development of Mumbai International Airport.

The CBI has also named Reddy's son GV Sanjay Reddy, who is the managing director of the Mumbai airport, and nine other private companies and unidentified officials of the AAI. The central probe agency has registered a case against them for criminal conspiracy, cheating under the Prevention of Corruption Act, 1988.

It is to be noted that the Mumbai International Airport is a joint venture between GVK Airports Holdings Limited and AAI. GVK Airports Holdings Limited is promoted by the GVK group, and a few other foreign entities. In 2006, an agreement was signed between AAI and GVK Airports Holdings Limited for the modernisation, upkeep and maintenance of the airport. 

The promoters of GVK group are accused of resorting to siphoning of funds in connivance with their executives and unidentified officials of AAI using different ways, PTI reported.

The CBI has also alleged that GVK group promoters siphoned funds showing execution of bogus work contracts to nine companies in 2017-18 causing a loss of Rs 310 crore. The promoters of GVK group are also accused of misusing reserve funds of MIAL worth Rs 395 crore to finance their group companies.