ED lodges money laundering case in Mumbai Airport Scam; CBI to send out summons to accused

After the Central Bureau of Investigation (CBI), the Enforcement Directorate (ED) has registered a money laundering case against GVK group and Mumbai International Airport Limited (MIAL). The case was registered over the weekend. Sources within the agency say that based on the predicate offence registered by CBI, ED has registered an Enforcement Case Information Report (ECIR) – an FIR equivalent – under various sections of the Prevention of Money Laundering Act.

Unlike the CBI, the ED hasn’t carried out the searches in this case. “We have gone through certain documentation in this case. Summons in the case will be sent out at an appropriate time,” said a source within the agency. According to CBI, over Rs 705 crore was siphoned off by accused persons in the case “resulting in a loss to the public exchequer between 2012-18.”

The CBI FIR, accessed by Republic TV, reads, “the promoters of GVK group in connivance with unknown officials from Airport Authority of India (AAI) adopted various means to divert funds meant for the modernisation, upgradation, operation and maintenance of Mumbai airport through their joint venture company (JVC) Mumbai International Airport Limited.“

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The CBI has registered the case against GVK Group Chairman Sanjay Reddy and MIAL Managing Director GV Sanjay Reddy. A total of 14 individuals and entities have been booked by CBI. The ED’s ECIR includes the same accused. CBI will soon be sending out summons to those who have been named as an accused in the FIR.

After the FIR was registered, CBI conducted searches on July 1 in Mumbai and Hyderabad. The agency suspects that the accused used shell / bogus companies to divert funds. The agency alleges that MIAL entered into fake contracts with bogus companies which resulted in losses to the exchequer. The agency maintains that funds were also embezzled by raising fake bills.

After the FIR was registered, MIAL had issued a statement, which read, “We would have provided every assistance had the agency sought explanation or any document even if a preliminary inquiry had been initiated. MIAL is a transparent and responsible corporate entity that is committed to cooperating with the agency in its investigation to arrive at the truth”.

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