SC upholds AERA powers, setback for GMR and Adani Groups
POWER & RENEWABLE ENERGY

SC upholds AERA powers, setback for GMR and Adani Groups

The Supreme Court (SC) has upheld the authority of the Airports Economic Regulatory Authority (AERA) to set tariffs for non-aeronautical services such as ground handling and cargo handling, dealing a blow to the GMR and Adani Groups. This decision overturns a ruling by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) and orders that the matter proceed for hearing on merit.

Delhi International Airport Limited (DIAL), led by GMR, and Mumbai International Airport Limited, under Adani Enterprises, challenged AERA’s tariff-setting authority for non-aeronautical services. They argued that AERA’s tariff determination is an adjudicatory function and raised doubts about its jurisdiction to regulate non-aeronautical services.

The Supreme Court rejected this argument, clarifying that even administrative actions, such as AERA’s tariff regulation, require adherence to principles of natural justice, without necessarily being adjudicatory. A bench comprising Chief Justice of India DY Chandrachud, and Justices JB Pardiwala and Manoj Misra emphasised that AERA’s primary duty is to ensure economically viable airport operations without compromising public interest.

The court noted that AERA, acting as a regulator, must factor in multiple considerations to determine and amend tariffs as required in the public interest. It ruled that AERA is a necessary party in appeals against its tariff orders and must be included as a respondent in such cases before TDSAT.

The conflict arose from a 2021 AERA order, which classified ground and cargo handling services as non-aeronautical when directly provided by DIAL but as aeronautical when managed through contractors. DIAL contested this order before TDSAT, which ruled in January 2023 that both services are non-aeronautical regardless of the provider. TDSAT also held that AERA lacked the jurisdiction to regulate tariffs for these services, citing existing agreements under which airport operators could set charges for non-aeronautical services.

However, AERA argued that its 2008 Act empowers it to regulate these services, even though TDSAT ruled otherwise. With the Supreme Court’s latest decision, AERA’s regulatory authority is reaffirmed, marking a significant shift in the regulatory landscape for India’s airports.

(Business Standard)

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

The Supreme Court (SC) has upheld the authority of the Airports Economic Regulatory Authority (AERA) to set tariffs for non-aeronautical services such as ground handling and cargo handling, dealing a blow to the GMR and Adani Groups. This decision overturns a ruling by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) and orders that the matter proceed for hearing on merit. Delhi International Airport Limited (DIAL), led by GMR, and Mumbai International Airport Limited, under Adani Enterprises, challenged AERA’s tariff-setting authority for non-aeronautical services. They argued that AERA’s tariff determination is an adjudicatory function and raised doubts about its jurisdiction to regulate non-aeronautical services. The Supreme Court rejected this argument, clarifying that even administrative actions, such as AERA’s tariff regulation, require adherence to principles of natural justice, without necessarily being adjudicatory. A bench comprising Chief Justice of India DY Chandrachud, and Justices JB Pardiwala and Manoj Misra emphasised that AERA’s primary duty is to ensure economically viable airport operations without compromising public interest. The court noted that AERA, acting as a regulator, must factor in multiple considerations to determine and amend tariffs as required in the public interest. It ruled that AERA is a necessary party in appeals against its tariff orders and must be included as a respondent in such cases before TDSAT. The conflict arose from a 2021 AERA order, which classified ground and cargo handling services as non-aeronautical when directly provided by DIAL but as aeronautical when managed through contractors. DIAL contested this order before TDSAT, which ruled in January 2023 that both services are non-aeronautical regardless of the provider. TDSAT also held that AERA lacked the jurisdiction to regulate tariffs for these services, citing existing agreements under which airport operators could set charges for non-aeronautical services. However, AERA argued that its 2008 Act empowers it to regulate these services, even though TDSAT ruled otherwise. With the Supreme Court’s latest decision, AERA’s regulatory authority is reaffirmed, marking a significant shift in the regulatory landscape for India’s airports. (Business Standard)

Next Story
Infrastructure Urban

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Next Story
Infrastructure Urban

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Next Story
Infrastructure Transport

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement