Delhi airport has invoked the force majeure clause to temporarily cease its revenue-sharing accord with the Airports Authority of India (AAI).
Delhi International Airport (DIAL), which manages and operates the Indira Gandhi International Airport, took the decision in the wake of low traffic flow and revenue impacted by the coronavirus pandemic, according to a report by Business Standard.
As per the agreement inked between DIAL and AAI in 2006, DIAL paid 45.99 per cent of its annual revenue as concession fee to AAI. DIAL deposits the (annual procession) fee on a quarterly basis in an escrow account, which AAI then transfers the money into its own account.
"A resolution to invoke the force majeure clause was passed by the DIAL board in November. Accordingly, we had approached AAI for a cease on revenue share till traffic was back to normal levels," a source told the publication, adding that DIAL planned to use the money in the escrow account to carry out airport maintenance.
DIAL, earlier this year, also moved the Delhi High Court (HC) to retrieve dues worth Rs 399.2 crore paid to AAI since April (2020) under a revenue-sharing agreement.
17/12/20 Business Today
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