MUMBAI: The Central Bureau of Investigation (CBI) on Thursday registered a case against Dr Gunupati Venkata Krishna (GVK) Reddy the chairman of GVK Group of companies and his son G V Sanjay Reddy Managing Director of Mumbai International Airport Ltd (MIAL) and a few others, for alleged irregularities worth Rs 705 crores in the running of the airport.

CBI has also filed an FIR against officials of Airport Authority of India and others in this case. The FIR has also named nine other private companies in the case involving alleged misappropriation of funds worth Rs 705 crore.

According to the FIR, all the accused have misused the funds in the name of Mumbai airport development works between 2012 and 2018.

MIAL is a joint venture of Mumbai International Airport Limited (MIAL), in partnership with GVK Airport Holdings Limited, Airport Authority of India (AAI) and other foreign entities.

GVK holds 50.5 percent stakes in it while AAI has a share of 26 percent.

Under the AAI and MIAL deal of 2006, Mumbai airport development and all other works will be under MIAL. The MIAL will have to pay 38.7 per cent of its income as an annual share AAI.

The remaining funds can be used for the modernization, operation and maintenance of the airport.

CBI alleged that the accused have diverted Rs 310 crore through bogus work contracts to nine private companies in 2017- 2018.

CBI added that most of the funds were utilized for the development of real estate on 200 acres around the Mumbai airport between 2017-18.

The CBI alleged that the promoters of GVK Group misused the MIAL Reserve Fund to finance their group companies, causing a loss to the joint venture company of over Rs 100 crore.

CBI sources claimed that the investigation found out that the accused had under-reported MIAL revenues during the same period, adding that the total loss to the state exchequer was more than Rs 1,000 crore.