GVK Group rebuffs Rahul Gandhi's remarks, says, 'No pressure from Adani to sell Mumbai Airport'

The GVK Group's statement comes a day after Congress leader Rahul Gandhi said in Lok Sabha that 'Mumbai airport was taken away from GVK using agencies such as the CBI and the ED, and was given to Adani by the Indian Government.'

The Business conglomerate GVK Group said there was no 'extraneous pressure' from anyone to sell its share in Mumbai airport, as claimed by Congress leader Rahul Gandhi, on Wednesday, February 8. The company's statements come a day after Gandhi said in Lok Sabha that 'Mumbai airport was taken away from GVK utilising agencies such as the CBI and the ED, and was given to Adani by the Indian Government."

A GVK Group spokesperson told PTI, "GVK reiterates that the decision to sell its shares in Mumbai Airport to Adani was made by management, and there was no issue of any extraneous pressure being imposed on us." 

Adani Group, embroiled in a controversy over a recent report by short-seller Hindenburg Research regarding its company's business dealing, took over the management of Mumbai airport from GVK Group in July 2021.

While describing the circumstances, GVK Group Vice Chairman Sanjay Reddy said the company was looking to raise capital for the airport business.

Reddy said that at the time, Adani Group founder-chairman Gautam Adani approached him, expressing his interest in the airport and asking whether the GVK Group was interested in striking a deal with them. 

"... He (Adani) assured us that we would complete the full transaction in one month, which was important for us. So, from that standpoint, everything we did was in the best interests of the company and the lenders we had to repay. Thus, we had to close the deal with Adani because we didn't see any light with the other investors," Reddy said. 

On Tuesday, while leading the Opposition attack on the Adani-Hindenburg issue in Lok Sabha, Gandhi claimed that the government changed the rules in favour of Adani and that the clause that no one without prior experience would be involved in airport development was removed.

"The government changed this regulation, and Adani currently has six airports. Following that, the Government of India took away India's most strategic and profitable airport, Mumbai Airport, from GVK using agencies such as the CBI and ED, and gave it to Adani," Gandhi claimed. 

Adani Enterprises Limited announced in July 2021 that Adani Airport Holdings Ltd (AAHL), the flagship holding company of Adani Group's airport sector, will own roughly 98 per cent of GVK Airport Developers Ltd (GVKADL) as a lender to the company. The management of Mumbai International Airport Ltd (MIAL) was taken over by AAHL.

GVKADL is the parent company of GVK Airport Holdings Ltd (GVKAHL), which owns 50.50 per cent of MIAL. The latter owns a 74 per cent share in Navi Mumbai International Airport Ltd.

(With inputs from PTI)