+
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)

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)

Related Stories

Gold Stories

Next Story
Infrastructure Urban

BMW Ventures Secures Rs 249.83 Million (mn) Steel Orders

BMW Ventures Limited said it has secured two purchase orders totalling Rs 249.83 million (mn) from Lata Projects Limited for the supply of TMT steel FE-550D grade for three units of 800 megawatt (MW) capacity at the USCTPP Adani project. The orders were disclosed to the stock exchanges under Regulation 30 of the SEBI Listing Regulations and carry a contract value inclusive of all taxes.\n\nThe company stated that the orders will be executed within eight weeks from the date of the purchase orders and that the contract provides for 100 per cent advance payment with specified guarantees. The supp..

Next Story
Real Estate

Housing Sales Dip in Top Eight Cities in Q2, Pune and Bengaluru Hit Hard

Housing sales across the top eight cities fell six point one per cent year-on-year to 91,729 units in the April-June quarter from 97,674 a year earlier, PropTiger’s Real Insight Residential report showed. The moderation reflected seasonal pre-monsoon effects and heightened buyer caution amid the US-Iran conflict. New launches rose six per cent to 89,161 units. The impact was concentrated in technology-driven markets, with Pune and Bengaluru among the hardest hit. Pune recorded the steepest annual decline at 20.8 per cent, with sales falling to 12,642 units, while Ahmedabad declined 20.2 per ..

Next Story
Infrastructure Urban

India And ADB Sign US$230 Million Loan To Modernise Chennai Water

The Government of India and the Asian Development Bank (ADB) signed a US$230 million loan to modernise and expand water supply and sanitation infrastructure in Chennai. Saurabh Singh, Deputy Secretary, Department of Economic Affairs (DEA), signed on behalf of the Government of India and Mio Oka, Country Director of ADB’s India Resident Mission, signed for the lender. The engagement was guided by Baldeo Purushartha, Joint Secretary (ADB and Japan), DEA. The Chennai Climate-Resilient Water Security and Sewerage Project aims to improve access to safe and reliable water and sanitation citywide w..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code