Earlier, the CBI had also investigated six places, including Mumbai International Airport and GVK Reddy’s premises.
According to CBI’s FIR, a scam has been registered in the name of airport development between 2012 and 2018.

GVK Group of Companies Chairman G Venkat Krishna (GVK) Reddy and his son GV Sanjay Reddy and the company’s promoter have been raided by a team from the Enforcement Directorate (ED). The operation has been carried out at the homes and offices of Krishna Reddy, his son and relatives in Mumbai and Hyderabad. The CBI had registered an FIR against the two in June. In the development of Mumbai International Airport on GVK Group, Rs. 705 crore is accused of fraud.

Names of 9 companies in FIR
The CBI’s FIR also names nine private companies, including some officials of the Airports Authority of India (AAI), Mumbai International Airport Limited and GVK Airport Holdings Limited. Earlier, the CBI had investigated six locations, including Mumbai International Airport and GVK Reddy’s in Mumbai and Hyderabad.

GVK Airport Holdings Limited, AAI and some foreign companies formed a company called Mumbai International Airport Limited (MIAL) in a joint venture. GVK owns 50.5% of the stock and AAI owns 26%.

Allegations against GVK Group – Fake contract scam
According to the FIR, the accused committed a scam in the name of Mumbai Airport Development between 2012 and 2018. The GVK Group has invested Rs. 395 crore. Although MIAL was located in Mumbai, the surplus fund was kept in banks in Hyderabad. A bogus proposal of the board meeting was prepared for this rigging. On the other hand, by showing a fake contract, Rs. 310 crore was defrauded.

MIAL contributes 38.7% of annual revenue to AAI
An agreement was reached between the Airport Authority and MIAL in 2006 that MIAL would operate the Mumbai airport and pay 38.7% of the annual revenue to AAI in fees. The remaining amount will be spent on modernization, operation and maintenance of the airport.