GVK to sell stake in airport business by FY'14 end: Official. Track Latest News Live on NDTV.com. Adani “will also take steps to complete the acquisition of 23.5% equity stake from ACSA and Bidvest in MIAL, for which it has obtained the CCI (Competition Commission of India) approval.” ACSA and Bidvest hold 10 and 13.5% stake, respectively, in MIAL. : Amarinder Singh On NIA Summons To Farmers, First Case Under New Law Against "Love Jihad" Filed In Madhya Pradesh, This website follows the DNPA Code of Ethics. We combine Bloomberg’s global leadership in business and financial news and data, with Quintillion Media’s deep expertise in the Indian market and digital news delivery, to provide high quality business news, insights and trends for India’s sophisticated audiences. Shrimi Choudhary | New Delhi Last Updated at July 3, 2020 09:20 IST The Enforcement Directorate (ED) is set to charge the promoters of the GVK group of companies and officials of Mumbai International Airport Ltd (MIAL), the company the group runs, with money laundering. "The promoters of the GVK Group of Companies in MIAL have embezzled more than 100 crore of the joint venture company by resorting to inflating the expenditure of MIAL," the FIR read. A worker looks at a mural as he rides on an escalator inside the newly built Terminal 2 of the Chhatrapati Shivaji International Airport, operated by GVK Power & Infrastructure Ltd., in Mumbai, India. The investors sent a legal notice on August 27 through their lawyer, AZB & Partners, stating that the sale of Mumbai International Airport (MIAL) to the Adani Group will be a “breach” of GVK’s contract with them. The case, filed by the Central Bureau of Investigation, also names officials of the Airport Authority of India and nine other private companies. MUMBAI: In a move that will catapult the Adani Group to being India's biggest airport operator by number of projects, GVK Power and Infrastructure has agreed to cede control of the Mumbai airport and the Navi Mumbai project to the conglomerate, according to separate statements from both entities. Follow our special coverage of Coronavirus pandemic in India and get news updates from around the world. But, according to Crisil, there’s limited visibility on treatment of accrued interest of around Rs 147 crore for period of moratorium from March to August 2020. Adani Airport Holdings Ltd., also a subsidiary of Adani Enterprises Ltd., has signed an agreement to acquire the debt of GVK Airport Developers Ltd., according to an exchange filing. Join our. In December last year, the GVK Group wrote to the City and Industrial Development Corporation (CIDCO), the nodal agency for the Navi Mumbai airport project, saying the Covid-19 pandemic has severely cut air travel demand and that Mumbai will not need a second airport till 2025. In an agreement signed on Monday, AAHL has agreed to acquire the entire 50.5 per cent stake of GVK Airport Developers Ltd in Mumbai International Airport Ltd (MIAL). The Enforcement Directorate (ED) on Tuesday conducted extensive search operations at the residence and office premises of GVK group Chairman G V K Reddy and his son G V Sanjay Reddy in Mumbai and Hyderabad, in connection with the alleged Rs 705-crore Mumbai airport scam. … GVK Group holds 50.50 per cent equity stake in Mumbai International Airport Limited (MIAL). The agency also alleged that "the promoters of the GVK Group of Companies with criminal intention to cause loss to AAI, used the surplus funds of MIAL to the tune of 395 crore to finance their other group companies between 2012 and 2018". The aviation industry has been severely impacted by Covid-19, setting it back by many years and has impacted the financials of MIAL, according to GVK Reddy, founder and chairman at GVK. That will give Adani nearly 74% stake in MIAL. GVK ADL is the holding company through which GVK Group holds 50.50% equity stake in MIAL, which in turns holds 74% equity stake in Navi Mumbai International Airport Limited (NMIAL). To accomplish this task, Mumbai International Airport Pvt. Ltd. (GVK CSMIA) was formed by GVK led consortium (74%) and Airports Authority of India (26%). Given current state of operations, its ability to generate accruals over near term is curtailed. A case has been registered against G Venkata Krishna Reddy, the chairman of the GVK Group of Companies and the Mumbai International Airport Ltd for alleged irregularities to the tune of Rs 805 crore, sources told NDTV. Bloomberg | Quint is a multiplatform, Indian business and financial news company. The Mumbai Airport scam involves allegedly irregularities to the tune of Rs 805 crore. In January 2006, GVK led consortium, comprising of Airports Company South Africa and Bidvest won the bid to manage and operate GVK CSMIA. All have been accused of "causing wrongful gain of over 805 crore to themselves and causing a loss to the public exchequer between 2012-2018," reads the First Information Report. Also, MIAL is not able to draw cash balance in escrow account because of pending judgment of Delhi High Court regarding payment of Annual Fee, Crisil said. GVK Airport Holdings, a subsidiary of GVK Power and Infrastructure, has agreed to acquire a 10% additional stake in Mumbai International Airport Limited (MIAL) for around $134.01m (Rs9.24bn). New Delhi: Billionaire Gautam Adani-led Adani Group has been delivered a huge blow with the Bombay high court declining to restrain South African company Bidvest from offloading its 13.5 per cent stake in Mumbai International Airport (MIAL) to a third party, including the GVK Group, and extending the payment deadline for buying the stake.. The airport is a public-private partnership venture, in which the GVK-led Mumbai International Airport Pvt Ltd has a 74 per cent stake, with CIDCO, the Maharashtra government’s nodal agency for the project, holding the remaining 26 per cent. The GVK Group has said that it has raised over Rs 7,600 crore from investors which will be used to pare its debt and buy a 23.5% stake in Mumbai International Airport (MIAL). GVK signs binding agreements with ADIA, PSP Investments and NIIF for an investment of Rs. During the meeting, officials reviewed the technical aspect after Adani Group took over the control of the proposed airport from GVK Group, which handled Mumbai International Airport. Prior to the suspension of passenger flight services on March 25 in the wake of nationwide lockdown to combat the coronavirus pandemic, the AAI-GVK group-run airport had been operating over 1,000 daily … MIAL has upcoming debt servicing obligations of around Rs 65 crore on project loans within September 2020. ................................ Advertisement ................................ CBI Case Against GVK Group, Airports Authority Over Mumbai Airport Scam, CBI Arrests Senior Railway Official, 2 Others In Rs 1 Crore Bribery Case, 2 CBI Officers Suspended For Taking Bribe From Bank Fraud Accused, CBI Officers Received Bribe From Firms Accused Of Bank Fraud, Says FIR, Pant Sings "Spiderman" Song Behind The Stumps, Video Goes Viral. If added, the total loss to the public exchequer will be more than Rs 1,000 crore," sources in the CBI told NDTV. GVK Reddy is the chairman of MIAL and GV Sanjay Reddy, who has also been named in the FIR, is the Managing Director of MIAL. According to a notification by the CCI, the acquisition of MIAL by Adani Group was “deemed approved”, given that there was no overlap of businesses offered by either of the parties in the relevant geographic market. Mumbai: The operator of the Mumbai international airport said on Sunday it will resume commercial passenger services on domestic routes from May 25 with 25 departures and arrivals each. 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