InvestorQ : What is the outcome of the CBI investigation into the GVK group?
Debbie Mascarenhas made post

What is the outcome of the CBI investigation into the GVK group?

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Crowny Pinto answered.
3 months ago

Even as GVK Reddy of the GVK group expressed willingness to cooperate with investigative agencies, he has expressed surprise over the filing of FIR against Mr. Reddy and his son on the Mumbai International Airport Ltd issue. CBI filed cases against GVK Reddy and Sanjay Reddy for alleged irregularities worth Rs.700 crores in the development of Mumbai Airport.

Mumbai International Airport Ltd or MIAL is a JV between a consortium led by the GVK group and the Airports Authority of India. The CBI has alleged that since 2012, promoters of GVK Group had displayed criminal intent to cause loss to AAI. They had allegedly used the surplus funds of MIAL worth Rs.395 crore to finance their other group companies.

CBI has searched the offices of GVK group in Mumbai and Hyderabad and searches have also been conducted at MIAL as well as other locations affiliated to the GVK Group. The GVK group had forayed into Indian infrastructure space post 2004 but had been badly hit by the massive economic slowdown in the Indian economy and that led to all their problems.