Logistics

GVK-led Mumbai International Airport under Ministry of Corporate Affairs’ scanner

V Rishi Kumar Hyderabad | Updated on October 15, 2019 Published on October 15, 2019

Representative image   -  The Hindu

This development comes in the backdrop of the GVK management seeking to bring on board strategic investments as a part of the debt restructure moves

The Mumbai International Airport Limited (MIAL), a GVK Group managed entity, has come under the Ministry of Corporate Affairs (MCA) scanner.

This comes at a time when the Hyderabad-based diversified GVK Power & Infrastructure Limited, which owns 50.5 per cent stake in the MIAL, is in the process of hiking its stake in the airport arm by acquiring 23.5 per cent additional stake from Bidvest and ACSA.

The MCA notice, according to sources, is based on a whistle blower complaint to MCA with regard to alleged ‘diversion of funds’ from some of the GVK Group companies.

When contacted, the GVK spokesperson said, “None of the GVK companies, with the exception of MIAL have received any communication from the MCA.”

“We confirm that only MIAL has received a communication asking for certain details, information, which are being furnished in normal course. GVK is not aware of any whistle blower complaint that have appeared in a section of media. They are baseless and hence we would like to refrain from responding,’ he said.

The Section 206 and related sections of the Companies Act, 2013, deal with the provisions relating to Inspection, Inquiry and Investigation of the affairs of company. Investigation within the meaning of the relevant provisions of the Act is a form of probe into the affairs of a company.

This development comes in the backdrop of the GVK management seeking to bring on board strategic investments as a part of the debt restructure moves. The company has been in talks with a sovereign fund to raise funds, acquire additional stake in MIAL and retire debt.

The Bidvest stake is being keenly pursued by the Adani Group which has taken up the matter with the Court. However, GVK has first right f refusal to acquire the Bidvest stake and it has expressed its keenness to acquire it and has been making efforts to raise funds.

Unconfirmed reports suggested that 11 companies of GVK have been served notices based on the complaint by a whistle blower seeking to probe the company books and the role of the auditors as well.

Published on October 15, 2019
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