ED raids in Mumbai airport scam, suspected to be Rs 800 crore scam

Mumbai Dt. 28 July 2020 Tuesday

The Airport Authority of India had given 200 acres of land to GVK Group for the redevelopment of Mumbai International Airport. In this case, it was alleged that a scam of Rs 800 crore had taken place through a bogus contract. The Enforcement Directorate registered a case of money laundering. In this regard, teams of Enforcement Directorate ED reached Mumbai and Hyderabad and carried out raids. Nine cases were prepared in connection with the scam.

GVK Group which was entrusted with the responsibility of redevelopment of Mumbai International Airport. The modernization, upgradation and maintenance of the airport were included in the deal. The ED team reached the residence of GVK chairman Sanjay Reddy. The ED also raided nine other companies belonging to the group. Earlier, the CBI had also raided Sanjay Reddy there.

In 2006, the Airports Authority of India allotted 200 acres of land to GVK for the redevelopment of Mumbai International Airport. Fake documents were made about this land like a gold bar and bogus contracts were also made. GVK had a 50.5 per cent stake in the contract and the Airport Authority of India had a 26 per cent stake. The rest was to go to other companies. As a rule, the first portion of the proceeds went to the Airport Authority. Then there was the matter of meeting the other part GVK.

A total of Rs 800 crore scam was reported. The CBI and the ED then launched an investigation into the case. A criminal case was registered against Sanjay Reddy. Several large heads were suspected to be involved in the case. The state had a Congress government when the contract was signed. Some leaders of the ruling party were suspected of being complicit in the scam.