Hyderabad-based GVK Group is under the Ministry of Corporate Affairs (MCA) scanner after a whistle-blower allegedly misappropriated funds, contracts given to related parties, issues of fake bills to inflate costs, and undue custom and excise duty benefits derived from raising bogus bills, sources told Moneycontrol.
An official said whistle-blower's letter reached the highest level in the ministry, prompting it in turn 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 – the Registrar of Companies and MCA has sent a physical inspection letter to each of these companies, sources said.
MCA is also looking into the roles of auditors and company officials, including company secretaries.
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 that are being supplied in the normal course. The GVK is not aware of any whistle-blower complaints about allegations that are baseless and would therefore refrain from responding, ”the spokesperson stated.The Great Diwali Discount!
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