The Mumbai unit of the Central Bureau of Investigation (CBI) has booked a case against the Hyderabad-based 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 development of the Mumbai International Airport.

The case of conspiracy and cheating was booked against nine other companies for allegedly showing bogus bills, officials said.

The CBI, in its FIR, said it was informed by reliable sources that the GVK group in connivance with other companies, allegedly committed fraud and caused heavy loses to the government exchequer.

In 2006, the Airport Authority of India (AAI) and GVK Airports Holdings Limited formed a joint venture under Public Private Partnership (PPP) for upgradation and maintenance of the Mumbai airport. The job of modernisation, upkeep, operation and maintenance of Mumbai International Airport Limited (MIAL) was accorded to GVK group.

In its FIR, the CBI said that as per information from sources, around 200 acres of underdeveloped land parcels in Mumbai, located around the airport was given to MIAL by AAI for development and revenue generation. The MIAL entered into a bogus work contract during 2017-18 with half a dozen companies.

MIAL transferred the funds to them but these contracts have never been executed on ground. Using this operandi, Rs 310 crore have been fraudulently siphoned off. The nine companies have availed fake input tax credit (ITC), the CBI said.

Sources informed the CBI that from 2012 onwards, the GVK group used surplus funds of MIAL to a tune of Rs 395 crore to finance their own group of companies. GVK allegedly forged a board meeting resolution with MIAL authorising to keep the reserve as FDRs with PSU banks in Hyderabad.

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