GVK misused Mumbai airport funds: CBI

Says promoters of group indulged in misusing of OMDA provisions by booking train, air travel tickets to its staff

By Author  |  Published: 3rd Jul 2020  12:18 am

Hyderabad: The Central Bureau of Investigation (CBI) has accused promoters of the GVK group of abusing the provisions of the Operation, Management and Development Agreement (OMDA) it signed with the Airports Authority of India (AAI) and misusing the funds of the Mumbai International Airport Limited (MIAL) by entering into agreements with a company owned by family members/employees.

Train and air travel tickets along with hotel bookings for all the personnel as well as GVK group employees who were not connected with the affairs of MIAL was done by misusing the provisions of OMDA, according to the CBI FIR.

The CBI has also booked a case against the GVK group’s Chairman G Venkata Krishna Reddy and his son G Venkata Sanjay Reddy on charges of siphoning off Rs 705 crore meant for the development of the Mumbai International Airport.

The CBI, in its FIR, said as per its source information, Orbit Tours and Travels Private Limited is one such company that arranges for travel and stay and the payment is paid by MIAL. The source information has also revealed that such fraudulent acts were with the full knowledge and connivance of some officials of the AAI.

In spite of knowing the facts, AAI officials allowed such diversion and misuse of MIAL’s funds to continue. The promoters of GVK assigned the premium retail area at the Mumbai airport to their family members, relatives and employees and caused losses to the AAI, the CBI said in its FIR, adding that the retail area was allocated in violation of the OMDA at low rates thereby reducing revenue to MIAL on account of earnings in the forms of rentals and sales.

The promoters of the GVK Group also embezzled huge funds by inflating MIAL’s expenditure, it said, stating that they had shifted staff of the head offices of the GVK group at Hyderabad and the employees of their group companies on to the payrolls of MIAL, Mumbai.

This was illegal since the employees who had no connection with MIAL were paid salaries causing revenue loss to AAI, the FIR said.

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