Ten more of GVK group’s entities under MCA lens
The companies include eight step-down subsidiaries of GVK group flagship GVK Power & Infrastructure ltd. Another entity on the radar include Bangalore International Airport Ltd, in which GVK group has sold its stake to Prem Watsa led Fairfax Group...
These include eight step-down subsidiaries of GVK group flagship GVK Power & Infrastructure Ltd — GVK Industries Ltd (GIL), Navi Mumbai International Airport Pvt Ltd (NMIAPL), GVK Gautami Power Ltd (GGPL), Alaknanda Hydro Power Co Ltd (AHPCL), GVK Power (Goindwal Sahib) Ltd, GVK Ratle Hydro Electric Project Pvt Ltd, GVK Bagodara-Vasad Expressway Pvt Ltd, GVK Jaipur Expressway Pvt Ltd, MCA sources told TOI.
The other entities on the MCA radar include Bangalore International Airport Ltd (BIAL), in which GVK group has sold its stake to Prem Watsa led Fairfax Group in 2017, and city-based Novopan Industries Ltd, which was engaged in the business of particle boards, furniture and chemicals and de-listed from bourses in 2014.
While eight of these 11 companies under the MCA scanner fall under the jurisdiction of RoC Hyderabad, two of them — MIAL and NMIAPL — are under RoC Mumbai and BIAL is under RoC Bangalore. According to sources, the MCA had written to regional directors of South East region and Western region in the first week of September directing them to ask the concerned RoCs to conduct an “inquiry” under Section 206 (4) of the Companies Act following a whistleblower complaint and submit their report within 45 days. While Hyderabad and Bangalore RoC come under South East regional director’s office (based in Hyderabad), the Mumbai RoC falls under western regional director’s office.
Sources said that Section 206 (4) pertains to only an “inquiry” as per which the concerned RoCs will examine the balance sheets and other documents that were submitted by these entities specific to the whistleblower complaint and ask concerned companies to clarify within a fortnight in case of any irregularities.
A GVK spokesperson on Tuesday stated that only MIAL has received communication from MCA. “None of the GVK companies, with the exception of MIAL have received any communication from the MCA (ministry of corporate affairs). We confirm that only MIAL has received a communication asking for certain details / information, which are being furnished in normal course,” the spokesperson said. “GVK is not aware of any whistleblower complaint about allegations that are baseless and hence we would like to refrain from responding,” the GVK spokesperson added.
As per GVKPIL’s 2018-19 annual report, a substantial chunk of its revenues came from its step-down subsidiary MIAL, which contributed Rs 3673.34 crore for fiscal ended March 31, 2019, out of GVKPIL’s consolidated revenues of Rs 4098.17 crore.
MIAL, which has been operating Mumbai’s Chhatrapati Shivaji Maharaj International Airport since May 2006, also bagged the Navi Mumbai International Airport under PPP mode.
Adani Group had signed an agreement earlier this year to acquire South African firm Bidvest’s 13.5% stake in MIAL, triggering a legal tussle with GVK, which claimed that it had first right of refusal to buy the stake.