The Enforcement Directorate (ED) has launched searches on the GVK Group across nine premises in Hyderabad, Bangalore, Mumbai and other places in connection with a money laundering case.

The ED had registered a case against the diversified Hyderabad-based infrastructure company after the Central Bureau of Investigation (CBI) had registered an FIR against GVK group on charges of siphoning off ₹705 crore meant for the development of Mumbai International Airport Limited (MIAL).

Related Stories
FIR filed by CBI: Mumbai Airport tells audit committee to seek legal advice
 

Following some information, the CBI had filed a case of conspiracy and cheating against nine entities/companies, along with the GVK Group and MIAL.

In its FIR, CBI said GVK group, in connivance with other companies, allegedly committed fraud and caused losses to the exchequer by diverting funds.

The ED probe relates to the alleged siphoning off ₹705 crore from MIAL , a joint venture between GVK Airport Holdings Limited, Airports Authority of India and other investors. It is contended that the money was siphoned off by showing inflated expenditure, under-reporting of revenues, and fudging of records, among others.

The CBI had initiated an FIR against GVK Reddy, Chairman of the Group and his son GV Sanjay Reddy, Vice Chairman More details are awaited.

Related Stories
Why the charges against GVK group are worrying
The alleged scam shows that movement of funds between a Group and its subsidiary warrants greater scrutiny