The Ministry of Corporate Affairs (MCA) recently ordered an investigation into the financial records of Mumbai International Airport Ltd (MIAL), which is a part of the Adani Group. They’re also looking into an associated company responsible for building the Navi Mumbai airport. This investigation is mainly centered around suspicions of financial wrongdoings that occurred when the GVK group was in charge of these companies, according to someone who knows about the investigation.
The investigation will check claims that money was moved away from MIAL while GVK owned it. This happened with the help of some subcontractors who were hired for building projects. The person who shared this information wants to remain anonymous.
The MCA investigation will focus on the problems mentioned in a report from the Central Bureau of Investigation (CBI). This report stated that fake contracts might have been used to steal money from MIAL. The MCA’s investigation, which is related to violations of the Companies Act, is expected to wrap up relatively quickly, likely within three to six months.
A spokesperson from the GVK group said that the Mumbai Cricket Association (MCA) sent letters to two airports, Mumbai International Airport Limited (MIAL) and Navi Mumbai International Airport Ltd (NMIAL). These two airports are now owned by the Adani group. MCA also sent letters to some other companies unrelated to GVK. But, none of the companies currently under the GVK group have received any of these letters.
“In the letter, the Ministry of Corporate Affairs (MCA) asked Mumbai International Airport Limited (MIAL) and Navi Mumbai International Airport Limited (NMIAL) for information covering the period from fiscal year 2018 to fiscal year 2022. It’s important to note that both the Directorate of Enforcement (ED) and the Central Bureau of Investigation (CBI) had already conducted thorough investigations into similar matters, going back as far as 2012.
MIAL and NMIAL, along with other companies that have received notices, will provide the requested information. Additionally, it’s worth mentioning that the GVK group had limited control over the management and operations of the airport after entering into a cooperation agreement on August 31, 2020,” said the spokesperson.”
The person speaking on behalf of the company also denied any claims of “financial wrongdoing” or accusations of “money being moved in the wrong direction” in the GVK group’s companies. They expressed doubt about the mentions of these issues in a question from Mint magazine.
“We’re a bit puzzled by how you reached this conclusion because, at this point, they’ve only requested information, and it doesn’t explicitly mention what you’re asserting. Additionally, we’d like to let you know that as soon as the CBI and ED began their investigations, our financial records underwent a thorough review and examination by the MCA,” explained the GVK spokesperson.
Emails we sent to the MCA spokesperson and the Adani group on Friday, as well as to the CBI on Sunday, requesting comments for the story, did not receive a response.
The Adani group recently informed the stock exchanges on October 13th that they are under investigation by the Ministry of Corporate Affairs (MCA). This investigation is related to their acquisition of MIAL and NMIAL, which they completed during the financial year 2022. The MCA is looking for information and documents dating back to the financial years 2018 to 2022. However, the Adani group did not specify the exact reason or subject of the investigation in their notice.
In the CBI’s June 2020 First Information Report (FIR), which you can find on the investigation agency’s website, they accused MIAL of various wrongdoings. These included things like fake work contracts, mishandling of money, and not accurately reporting their income.
