GVK Group Chairman G Venkata Krishna Reddy and his son GV Sanjay Reddy have been facing difficulties. In fact, the CBI has registered a case against these two in the case of manipulation of Rs 705 crore. Apart from this, a case has also been registered against some officials of the Airport Authority of India.
What is the matter?
GVK Airport Holdings Limited, the Airport Authority of India (AAI) and other foreign companies formed a company called Mumbai International Airport Limited (MIAL) as part of the joint venture. On April 4, 2006, AAI entered into an agreement with MIAL for the modernization, maintenance and operation of Mumbai Airport with MIAL.
Misuse of Surplus Fund
It is alleged that between 2012 and 2018, money from the Surplus Fund was misused in the name of development at Mumbai Airport. GVK Group invested 395 crore rupees from MIAL’s surplus fund in its other companies. Not only this, despite MIAL being in Mumbai, but the money of its surplus fund was also kept in Hyderabad banks.
The Central Investigation Agency CBI has also alleged that the GVK Group increased the MIAL’s spending figures by showing payments to its headquarters and employees of the group companies that were not involved in the operations of the MIAL, causing a revenue loss to the AAI.
Whose stake in MIAL
Let us tell you that in the year 2006 there was a deal between the Airport Authority of India (AAI) and Mumbai International Airport Limited (MIAL). As part of the deal, it said Mumbai would run MIAL to the airport and would give 38.7 per cent of its annual revenue to AAI as a fee. GVK Group holds 50.5 per cent of shares in MIAL and 26 per cent with AAI.