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Now, ED files money laundering case against GVK promoters

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Noose is tightening around the promoters of GVK Group. After the CBI, the Enforcement Directorate (ED) on Tuesday pressed money laundering charges against the promoters of the GVK group of companies, officials of Mumbai International Airport Ltd (MIAL) and few other entities in connection with Rs 705 crore Mumbai Airport scam.

The Enforcement Directorate has filed a case under the Section 3 of Prevention of Money Laundering Act (PMLA) which deals with concealment of proceeds of crime where the accused shall be guilty of money laundering.

The ED action follows the criminal case registered by CBI against GVK group’s chairman Gunupati Venkata Krishna Reddy and his son Gunupati Sanjay Reddy for siphoning off funds to a tune of Rs 705 crore which was meant for the development of Mumbai International Airport. The premier investigating agency had also filed a criminal case against 12 others including those of the GVK group, officials of MIAL, the Airports Authority of India (AAI) and several entities for alleged cheating, fraud, and criminal conspiracy under the Prevention of Corruption Act.

The CBI had also booked cases against nine companies linked to the GVK Group, including Ms/ Orbit Travel and Tours Private Limited whose director is Pinky Reddy (Gunupati Aparna Reddy). 50-year-old Pinky Reddy is daughter of politician-industrialist T Subbarami Reddy. Pinky Reddy is a socialite known for her massive parties.

According to the CBI, GVK Group had entered into an agreement with Orbit Travel and Tours Private Limited to book train and air travel tickets and hotel booking for all the group employees of GVK. These employees were not even remotely connected with the affairs of Mumbai International Airport Limited (MIAL). The CBI probe revealed that promoters of GVK group misused funds of MIAL.

According to the CBI, Rs 310 crore was siphoned off by showing bogus work contracts to nine firms. Further, the GVK Group promoters under reported revenue earnings of MIAL for meeting personal expenses. It is also found that the promoter of GVK Group misused MIAL’s surplus funds amounting to Rs 395 crore to finance group companies, according to the CBI.

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