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CBI calls for DIAL papers in alleged airport scam

IANS  |  New Delhi 

Probing further into the alleged financial irregularities involving the GMR Group-led International Airport Pvt Ltd (DIAL), the (CBI) has asked the to provide the complete file related to the company at the "earliest".

The investigating agency has also called for the Comptroller and Auditor General's (CAG) report on the privatisation of airport .

In its letter dated May 3, 2019, accessed by IANS, the CBI has said that it had become necessary to obtain the records and documents related to the airport operator in the Supreme Court-monitored investigation.

"The CBI has asked for complete file of operation, management and development agreement (OMDA) between Airports Authority of (AAI) and GMR since beginning to till date," a person aware of the development said.

Response is awaited to an IANS email query to DIAL on the matter.

The previous had, in 2006, awarded the contract to the GMR Group-led consortium for operation, management and development of the The initial term of the concession is 30 years extendable by a further 30 years.

International Airport (DIAL) is a joint venture of the (64 per cent), Airports Authority of (26 per cent) and (10 per cent).

As part of the agreement, the private firm was allowed to commercially exploit around 240 acres out of the 4,600 acres of airport land in Delhi.

While the project is counted among the successful public-private partnership (PPP) stories, it has had, at the same time, its own share of controversies.

It has been alleged that the airport company floated almost a dozen joint venture firms to lower its share of revenue to government-owned AAI. As per the concession agreement, DIAL is required to share 46 per cent of its total revenue with AAI.

The airport operator has, however, defended its decision to form JV firms maintaining that the same is allowed under the terms of the concession agreement.

DIAL had also come under question for cost overruns. The total capex for the airport makeover escalated to Rs 12,502 crore, amounting to Rs 3,527 crore more than the initially estimated Rs 8,975 crore.

(Nirbhay Kumar may be contacted at nirbhay.k@ians.in)

--IANS

nk/sn

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, May 13 2019. 15:04 IST
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