With Adani Group set to acquire a 74% stake in Mumbai International Airport, Abu Dhabi Investment Authority (ADIA) and Canada’s Public Sector Pension (PSP) Investments have drawn the Center’s attention through a letter seeking a fair and transparent solution.
In October 2019, the GVK had agreed to sell its 79% stake in GVK Airport Holdings for Rs 7,614 crore to the Abu Dhabi Investment Authority, Canada’s Public Sector Pension Investments, and state-owned National Investment and Infrastructure Fund. The proceeds of this were to be used by GVK to primarily retire debt obligations of its holding companies and fund the purchase of additional shares in MIAL.
According to ET, ADIA is also a limited partner of NIIF. It was among the first global investors to step in as an LP to fund and offer initial capital along with the government of India to develop strategic infrastructure in the country, the report said. It has already invested over $10 billion in India, with its most recent investment being in Reliance Jio where it deployed $750 million.
However, if ongoing negotiations between GVK and the Adani Group fructify, it would supersede the earlier deal between investor consortium involving National Investment and Infrastructure Fund, ADIA and PSP Investments. They had agreed to buy a major stake in the operating company running Mumbai Airport. Now, the matter has been caught in legal proceedings. An official told ET that the whole situation has become ‘very uncomfortable’ for the global players. At a time when the matter is in the courts, the inexplicable manner in which various agencies have stepped up the ante is disconcerting, he said.
It has also been noted that the new deal between GVK and Adani comes after the Central Bureau of Investigation (CBI) charged the GVK Group with siphoning off funds worth Rs 705 crore and causing a loss of Rs 310 crore to the exchequer by entering into fake work contracts on land given by the government to MIAL.