Mumbai airport scam: ED searches GVK promoters' residences, offices

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.
The move follows the money laundering case registered against the promoters of the GVK group of companies, officials of Mumbai International Airport Ltd (MIAL), and a few other entities early this month.

Confirming the development, an ED official said the searches are underway in about nine locations in Hyderabad and Mumbai, including some entry operators connected to the MIAL.
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ED had pressed Section 3 of the Prevention of Money Laundering Act (PMLA), which deals with concealing proceeds of a crime where the accused shall be guilty of money laundering.
The ED action follows the criminal case registered by the Central Bureau of Investigation (CBI) on June 27 against Reddys and others. The case also includes the names of some Airports Authority of India (AAI) officials and nine other private firms.
The case is related to allegations of irregularities amounting to Rs 705 crore in developing Mumbai Airport. The investigative agency alleged that the money was siphoned off by the accused, causing a loss to the exchequer between 2012 and 2018.
Sources in the ED indicated that the people connected with the case would be summoned and quizzed in the coming weeks.

CBI probe, funds crunch, ratings downgrade: The many troubles of GVK Group

GVK Group founder G V Krishna Reddy is facing his biggest test yet as the Central Bureau of Investigation (CBI) has accused him of siphoning off Rs 705 crore from Mumbai airport’s funds. This comes at a time when the GVK Group is already fighting multiple battles.
It is trying to stave off Adani Group’s entry as a shareholder in the Mumbai airport project. Rating agency CRISIL and Maharashtra government’s City and Industrial Development Corporation (Cidco), which owns 26 per cent in the Navi Mumbai airport along with GVK Group, have separately flagged off ...

GVK to raise Rs 7,614 crore to retire debt of its holding companies

GVK Group companies have entered into definitive agreements with subsidiaries of the Abu Dhabi Investment Authority,Canada's Public Sector Pension Investment Board and National Investment and Infrastructure Fund to raise Rs 7,614 crore investments into GVK Airport Holdings Limited.
GVKAHL is the holding company of Mumbai aAirport Limited (MIAL) andengaged in the business of developing, operating and managing the Chhatrapati ShivajiMaharaj International Airport, Mumbai and development of Navi Mumbai InternationalAirport.

A GVK press release said proceeds from the transaction would be used to primarily retire debt obligations of its holding companies significantly and fund the purchase of additional shares in MIAL by GVKAHL, from Bidvest and ACSA in accordance with the Right of First Offer already exercised by GVKAHL.
The GVK Group had earlier said it was determined to acquire the 13.5 per cent in Mumbai International Airport Limited owned by South African firm Bid Services Division Mauritius or Bidvest.
Other shareholders are ACSA Global (Airports Company of South Africa) which owns 10 per cent, Airports Authority of India (26 per cent) and GVK Airport Holdings, which is the majority owner with a 50.5 per cent ownership in the company that runs the country's second busiest airport.
GVK has already announced its intention to acquire ASCA Global's 10 per cent stake.
Adani Group and GVK engaged in a legal tussle over the acquisition of Bidvests stake.
G V K Reddy, Founder and Chairman, GVK, said, "We are delighted to welcome ADIA, PSP Investments and NIIF as shareholders in GVKAHL.
Together, we will continue with our endeavors to create world class infrastructure and a strong aviation hub that will provide the impetus for growth and development of Mumbai and India.
We will now accelerate our efforts for developing the Navi Mumbai International Airport, monetizing MIAL's real estate assets and building an even stronger airports business.
This transaction validates the Government of India's efforts to attract global investors into the country."
As per the terms of the proposed transaction, upon completion, GVKAHL will have fourshareholders GVK Airports Developers Limited , ADIA, PSP Investments and NIIF.
G V K Reddy will continue as Executive Chairman and G V Sanjay Reddy as ManagingDirector in both MIAL and NMIAL.
Upon completion of the Transaction, GVKADL will hold 20.9 per cent in GVKAHL and the balance will be equally shared between the Investors.

GVK to buy ACSA's stake in Mumbai airport company, raise stake to 74%

GVK Power and Infrastructure Limited (GVK PIL) on Friday informed the stock exchanges that its step-down subsidiary GVK Airport Holdings Limited has initiated the process to acquire 120 million shares of Mumbai International Airport Limited (MIAL) constituting 10 percent of the paid up share capital of MIAL from ACSA Global Limited by exercising its right under Right of First Refusal in the shareholder agreement.
Last month, the company had exercised its right of first refusal to acquire 13.5 percent stake in MIAL from Bid Services Division (Mauritius) Limited (Bidvest) after Adani Group had proposed to buy out Bidvest's stake in response to a formal offer. The Adanis also made an offer to acquire ACSA's stake in MIAL around the same time.

With the exercise of first right of refusal for the acquisition of shares held by these two joint venture partners who decided to exit the company, GVK Airport Holdings' stake will rise to 74 per cent upon the completion of acquisition of their stakes from the present 50.5 per cent level.
As it was agreed to acquire the shares from Bidvest as well as ACSA at the rate of Rs 77 per share, GVK will require Rs 2,171.4 crore to pay for the acquisition of the 23.5 percent stake.
It is not clear as to how the Hyderabad-based infrastructure conglomerate was planning to raise the amount to fund this acquisition.
MIAL is a public-private joint venture between GVK, Bidvest, ACSA and Airport Authority of India(AAI), which was awarded the mandate for operating and modernising the Chatrapati Shivaji International Airport(CSIA), Mumbai, in April 2006. The GVK-led MIAL had also received the letter of award for the development of green-field Navi Mumbai international airport project in October 2017.
The AAI, which holds 26 percent stake in MIAL will be the only other JV partner to bepost-acquisitionsition of stakes from Bidvest and ACSA by GVK arm in the Mumbai airport company.