Hyderabad-based GVK Group is under the Ministry of Corporate Affairs’ (MCA) scanner after a whistle-blower alleged siphoning of funds, contracts given to related parties, issue of fake bills to inflate cost, and undue custom and excise duty benefits derived by raising bogus bills, sources told Moneycontrol.
An official said the whistle-blower’s letter reached the highest level in the ministry, which in turn prompted it to order an inspection into the companies’ books
MCA has initiated an inspection of the books of 11 entities, which include GVK Power & Infrastructure, Mumbai International Airport, GVK Jaipur Expressway Pvt and GVK Power. It has also ordered an inspection of the books of Navi Mumbai International Airport Pvt – the under construction airport at Navi Mumbai.
These companies are located in different jurisdictions -- Hyderabad, Bengaluru, Rajasthan and Mumbai -- of the Registrar of Companies and MCA has sent a physical inspection letter to each of these companies, sources said.
MCA is also looking into role of auditors and company officials, including company secretary.
A GVK spokesperson said only MIAL has received a communique from MCA. “We confirm that only MIAL has received a communication from the Regional Director, Western Region asking for certain details/information, which are being furnished in normal course. GVK is not aware of any whistle-blower complaint about allegations that are baseless and hence would like to refrain from responding,” the spokesperson stated.
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