Hyderabad: The Enforcement Directorate (ED) is conducting searches in Hyderabad on Tuesday against the GVK Group in connection with the money laundering probe in the Mumbai International Airport Limited (MIAL) case.
The ED teams are conducting searches at three locations in Hyderabad, apart from simultaneous searches at Mumbai and other places.
The ED had filed a money laundering case against the GVK Group, MIAL and others on July 12 to probe alleged irregularities to the tune of Rs 705 crore in running the Mumbai airport.
The agency, which filed an enforcement case information report under the Prevention of Money Laundering Act, is probing if genuine funds were laundered to amass personal assets through illegal routing of funds.
Earlier this month, the Central Bureau of Investigation (CBI) had registered a case against GVK for the alleged siphoning of Rs 705 crore from Mumbai International Airport Limited funds through bogus contracts, underreported revenues, misuse of reserves for the holding company; by allowing premium retail spaces to family and relatives at lower rates; by booking “exuberantly expensive” air and train travel for employees and those close to GVK Holdings.
It booked GVK Holdings, its founder Gunupati Venkata Krishna Reddy, his son Venkata Sanjay Reddy, Managing Director of MIAL along with eight other persons, including public servants of the Airport Authority of India (AAI) on charges of cheating and forgery.
MIAL is a joint venture under public-private partnership (PPP) between the GVK Airport Holdings Limited and AAI besides other investors.
IANS