According to CBI, AAI gave 200 acres of underdeveloped land to GVK for redevelopment. MIAL then allegedly gave "bogus contracts" to companies and siphoned off over Rs 310 crore. The GVK group allegedly used MIAL funds by entering into agreements with a company owned by the promoters' relatives. MIAL funds were allegedly used to book train and flight tickets and hotel rooms group employees not connected to the airport company.
On misusing reserve funds, the CBI FIR said that Rs 395 crore was used by GVK to finance their other group companies. “They fraudulently created forged board meeting resolutions of MIAL authorizing to keep the reserve surplus funds of MIAL as fixed deposit receipts (FDRs) with PSU banks at Hyderabad MIAL is Mumbai based company but they chose to deposits the funds in the form of FDRs with Hyderabad based branch of Bank of India, said the CBI in its probe report.
At 12:28 pm, the stock was still down 5 per cent with a combined 20.65 million shares having changed hands on the counter on the NSE and BSE. In comparison, the S&P BSE Sensex was ruling at 35,848.08 level, up 433.63 points or 1.22 per cent. Other group firm, Taj GVK Hotels and Resorts, too, declined 4.6 per cent in the intra-day trade.
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