ED files money laundering case against GVK group, MIAL
The Enforcement Directorate (ED) has registered a money laundering case against the GVK group, the Mumbai International Airport Limited (MIAL) and others to probe violations under the Prevention of Money Laundering Act (PMLA) to the tune of Rs705 crore in the Mumbai airport operations.
The ED has filed an Enforcement Case Information Report (FIR in police parlance) under the PMLA after taking cognisance of a recent CBI FIR that booked these entities to probe criminality in terms of criminal conspiracy and graft.
The agency will probe if genuine funds were laundered to amass personal assets by illegal routing of funds or proceeds of crime, sources said.
The CBI case in this connection relates to the alleged siphoning off Rs 705 crore from the funds of the Mumbai International Airport Limited (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 CBI has booked Gunupati, a director in MIAL, his son GV Sanjay Reddy, Managing Director in MIAL, the companies MIAL, GVK Airport Holdings Limited (a GVK group company) and nine other private companies allegedly used to camouflage the inflated figures of expenditure through sham deals and unidentified AAI officials, the sources further said.
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 CBI had said after registering the FIR earlier this month.
Following the registration of the case, the CBI had also carried out raids in Mumbai and Hyderabad against the accused individuals and entities.