Monday, February 08, 2016

Airports invoke dispute clause as AAI demands audit by CAG

New Delhi: GMR-led Delhi International Airport Ltd (DIAL) and GVK-led Mumbai International Airport Ltd (MIAL) have entered into a dispute with their joint venture partner Airports Authority of India (AAI), against the AAI’s demand for an audit of the books of account of the two airport operators by the Comptroller and Auditor General of India (CAG). If the dispute is not settled within 60 days, then the matter can be referred to an arbitration tribunal.
DIAL as well as MIAL, late last December, invoked the dispute clause available in the Operations Management and Development Agreement (OMDA) that they signed with the state-owned AAI in 2006 to modernise and operate Delhi and Mumbai airports, respectively, according to sources.
DIAL and MIAL have both contested AAI’s argument that OMDA empowers AAI to appoint CAG as its representative for audit purposes, the sources said.
In September 2015, citing its rights under Article 11.3 of the OMDA, AAI sought to nominate CAG as its representative to audit books of accounts of DIAL and MIAL.
Article 11.3 of the OMDA says: “The AAI and its representatives shall be permitted to inspect at any reasonable time the books, records and other material kept by or on behalf of the JVC in order to check or audit any information (including the calculation of Revenue) supplied to the AAI under this Agreement.” -
08/02/16 Sunny Verma/Indian Express
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