Adani Airport Holdings faces ministry probe
16 Oct 2023
2 Min Read
CW Team
Adani Enterprises has officially notified the stock exchanges that the Ministry of Corporate Affairs has launched an investigation into the financial records and associated documents of Mumbai International Airport and Navi Mumbai International Airport.
These airports are presently under the management of Adani Airport Holdings, a subsidiary of the multinational corporation promoted by Gautam Adani. They were acquired from the previous owner, GVK Airport Developers, in 2021.
Adani Enterprises clarified that the acquisitions of Mumbai International Airport (MIAL) and Navi Mumbai International Airport (NMIAL) were finalised during the financial year 2021-22. The information and documents being requested in the investigation pertain to the period spanning from 2017-18 to 2021-22. MIAL and NMIAL will respond to these inquiries in compliance with applicable legal regulations, as stated in their communication to the stock exchanges.
In a related context, it is important to note that in July 2020, the Central Bureau of Investigation filed a first information report against GVK Reddy, the Chairman of the Hyderabad-based GVK Group, and his son Venkata Sanjay Reddy. They were accused of fraud and causing a loss of Rs 7.05 billion to the state exchequer due to fraudulent activities at Mumbai International Airport. The investigation is being conducted by the office of the Regional Director of the Southeast Region of the Ministry of Corporate Affairs, situated in Hyderabad.
Mumbai International Airport was privatised in 2006, with the GVK Group-led airport consortium taking control from the Airports Authority of India. Additionally, apart from Mumbai and Navi Mumbai International Airports, the Adani Group has also obtained the rights for the operation, management, and development of airports in Ahmedabad, Jaipur, Lucknow, Thiruvananthapuram, Mangaluru, and Guwahati. These rights have been secured based on a per-passenger fee payable to the Airports Authority of India, and the agreement spans a period of 50 years.
Adani Enterprises has officially notified the stock exchanges that the Ministry of Corporate Affairs has launched an investigation into the financial records and associated documents of Mumbai International Airport and Navi Mumbai International Airport.
These airports are presently under the management of Adani Airport Holdings, a subsidiary of the multinational corporation promoted by Gautam Adani. They were acquired from the previous owner, GVK Airport Developers, in 2021.
Adani Enterprises clarified that the acquisitions of Mumbai International Airport (MIAL) and Navi Mumbai International Airport (NMIAL) were finalised during the financial year 2021-22. The information and documents being requested in the investigation pertain to the period spanning from 2017-18 to 2021-22. MIAL and NMIAL will respond to these inquiries in compliance with applicable legal regulations, as stated in their communication to the stock exchanges.
In a related context, it is important to note that in July 2020, the Central Bureau of Investigation filed a first information report against GVK Reddy, the Chairman of the Hyderabad-based GVK Group, and his son Venkata Sanjay Reddy. They were accused of fraud and causing a loss of Rs 7.05 billion to the state exchequer due to fraudulent activities at Mumbai International Airport. The investigation is being conducted by the office of the Regional Director of the Southeast Region of the Ministry of Corporate Affairs, situated in Hyderabad.
Mumbai International Airport was privatised in 2006, with the GVK Group-led airport consortium taking control from the Airports Authority of India. Additionally, apart from Mumbai and Navi Mumbai International Airports, the Adani Group has also obtained the rights for the operation, management, and development of airports in Ahmedabad, Jaipur, Lucknow, Thiruvananthapuram, Mangaluru, and Guwahati. These rights have been secured based on a per-passenger fee payable to the Airports Authority of India, and the agreement spans a period of 50 years.
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