The Airports Economic Regulatory Authority (AERA) recently approved an increase of 346 per cent in airport charges. The decision was taken to please the Delhi International Airport Limited (DIAL), which has been lobbying for an increase in the user development fee (UDF).
Aggrieved by the decision of the Government to allow UDF collection, some consumer organisations approached the courts.
Initially, the Delhi High Court upheld the decision of the Government. But the Supreme Court ruled that UDF collection was illegal.
Without going into the technicalities of the contract and fee collection, the Supreme Court said that the collection was ab-initio void because there were no enabling ‘Rules' to empower fee collection.
29/04/12 KN Balagopal/Business Line
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