Mumbai International Airport to Cooperate in CBI Probe Related to Rs 705 Cr Irregularities

Mumbai International Airport Ltd (MIAL), which runs the city’s airport, on Thursday expressed “surprise” over the filing of an FIR against it and said the company is “committed to cooperate” with the investigating agency in its probe.

MIAL is a joint venture between GVK group-led consortium and the Airports Authority of India.

The statement came after the registration of a case against Venkata Krishna Reddy Gunupati, the chairman of the GVK Group of Companies, and his son G V Sanjay Reddy, Managing Director of MIAL, among others by the CBI for alleged irregularities of Rs 705 crore in the running of the airport. The CBI also conducted searches at the group’s offices in Mumbai and Hyderabad on Thursday.

“MIAL is surprised to note the registration of a case by CBI against MIAL and others. MIAL would have provided every assistance had the agency sought explanation or any document even if a preliminary enquiry had been initiated,” a MIAL spokesperson said in a late evening statement.

“MIAL is a transparent and responsible corporate entity which is committed to co-operate with the agency in its investigation to arrive at the truth,” the company further said in the statement.

The case pertains to the alleged siphoning off Rs 705 crore from the funds of MIAL, a joint venture under public private partnership (PPP) between the GVK Airport Holdings Limited and the Airports Authority of India (AAI) besides other investors, by showing inflated expenditure, under-reporting of revenues, fudging of records among others, the officials said.

The Central Bureau of Investigation (CBI) has booked Gunupati, a director in MIAL, his son GV Sanjay Reddy, the companies MIAL, GVK Airport Holdings Limited (a GVK group company) and nine other private companies that were allegedly used to camouflage the inflated figures through sham deals and unidentified AAI officials, they added.

The AAI had formed a joint venture with GVK Airports Holdings Limited under public-private partnership firm Mumbai International Airport Limited (MIAL) for the upgradation and maintenance of the Mumbai airport.

On April 4, 2006, the AAI entered into an agreement with MIAL for the modernisation, upkeep, operation and maintenance of the Mumbai airport.

It is alleged that the promoters of the GVK group in MIAL, in connivance with their executives and unidentified AAI officials, resorted to siphoning off funds using different ways, the officials said on Wednesday.ed to siphoning of funds using different ways, officials said.