Friday, August 11, 2017

DIAL made 162% profit in JV stake sale; Airports Authority of India not given a penny

New Delhi: The Delhi International Airport Pvt Ltd (DIAL), a consortium led by the GMR group, got a 162 per cent premium from selling stake in a loss-making joint venture (JV) deal, but did not share a single penny with its partner government agency, the Airports Authority of India (AAI). Under the Private-Public Partnership (PPP) contract, DIAL had agreed to share 45.99 per cent of its gross revenue with AAI.

The Comptroller and Auditor General (CAG) raised a question on a specific revenue-sharing violation in DIAL's JV with Delhi Cargo Service Center Pvt Limited - which handles cargo operations at the airport. Internal documents revealed that DIAL had gained an unprecedented 162 per cent premium on the DCSC deal struck on March 16, 2015.

CAG asked DIAL why it did not share the huge gain in the JV stock sale in DCSC with AAI. Documents accessed by DNA reveal that DIAL not only shifted the operational cost of cargo activities (which is technically not allowed) to the JV, but also made profit from the selling of equity.

On November 4, 2008, DIAL was invited to bid for the design, finance, development and management of the Greenfield Cargo Terminal for Indira Gandhi International (IGI) Airport. In September 2009, the contract was awarded to a special purpose company, DCSC, at the rate of 24 per cent of its gross revenue. Immediately then DIAL bought 26 per cent equity capital worth Rs 10.92cr in DCSC.
11/08/17 Dipu Rai/DNA