Enforcement Directorate searches GVK Group properties
HYDERABAD: The Enforcement Directorate (ED) has been conducting searches in Hyderabad, Mumbai and other cities on properties related to Hyderabad-based GVK Group’s chairman G Venkata Krishna Reddy and his son G Venkata Sanjay Reddy for the last couple of days.
This is in the wake of a case that has been registered against the group on charges of siphoning off `705 crore meant for development of the Mumbai International Airport Limited (MIAL).
According to sources, searches in Hyderabad were carried out at three locations by the ED Mumbai team and officials from their Hyderabad unit.
Inquiries so far have revealed that funds related to MIAL, operated by the GVK Group, were diverted to the firm’s accounts at Hyderabad and were converted into fixed deposits. Using these fixed deposits, the firm raised loans.
The CBI had earlier registered a case against GVK and its sister companies on charges of cheating, forgery and fraud. Based on this, the Enforcement Directorate registered a fresh case under the provisions of the Prevention of Money Laundering Act.
The GVK Airports Holdings Ltd entered a joint venture with Airports Authority of India for upgradation and maintenance of the Mumbai airport, which led to the formation of MIAL. Later, the group “with a criminal intention,” caused losses to AAI.