ED files case against GVK group in Mumbai airport scam

Tribune News Service

New Delhi, July 7

The Enforcement Directorate (ED) on Tuesday registered an enforcement case information report (equivalent of a police FIR) against the GVK group, officials of Mumbai International Airport Ltd (MIAL) and few others in connection with the Rs 705-crore Mumbai Airport scam.

The agency has filed a case under the Prevention of Money Laundering Act after studying a recent CBI FIR filed against the same entities. The CBI case pertains to the alleged siphoning of Rs 705 crore from the funds of the MIAL, a joint venture under the public-private partnership between GVK Airport Holdings Limited and the Airports Authority of India (AAI), besides other investors, by showing inflated expenditure, under-reporting of revenues and fudging of records.

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

In its FIR, the CBI alleged that that the promoters of the GVK group in the MIAL, in connivance with their executives and unidentified AAI officials, resorted to siphoning of funds. The CBI had also carried out raids in Mumbai and Hyderabad after filing its FIR.