MIAL can't charge airport development fee without regulator nod: SC

New Delhi/Mumbai: The Supreme Court on Tuesday said the private operator of India's busiest airport, Mumbai, will not be allowed to collect airport development fee (ADF), spreading cheer among passengers who will have to pay less.
However, this has sparked concern among investors as business plans would have to be drawn up afresh. The court asked the consortium led by GVK Group to seek permission to levy these fees from the Airports Economic Regulatory Authority (AERA), set up to regulate airport tariffs.
"As per the judgement of the Supreme Court, the AERA will have to pass an appropriate order for continuation of the ADF levy at the Mumbai Airport," said the spokesperson for MIAL. However, in a statement on Tuesday evening, the GMR-led Delhi International Airport Ltd (DIAL) said it will continue collecting Rs 200 from domestic passengers and Rs 1,300 from international passengers as the regulator, AERA, had allowed DIAL to levy ADF.
"DIAL will continue to charge ADF as per the approval granted by AERA. In view of the facts of the case, DIAL shall not be obliged to refund any amounts collected by it," said the Delhi airport operator. The stocks of both companies slumped as initial reports suggested that ADF had been "struck down".
GMR closed at Rs 38.30, down 3.16% and GVK closed at Rs 25.20, down 4%. The two-member bench, comprising of Justice RV Raveendran and Justice AK Patnaik, which was hearing an appeal filed by Bejon Misra of Consumer Online Foundation , an NGO, against the Delhi High Court order of 2009, overruled the High Court verdict that stated that levy of the ADF by virtue of it being a government decision cannot be challenged.
27/04/11 Economic Times

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Categories: Airports Apr 2011