The Karnataka HC Has Reserved Its Verdict On The Plea Opposing Adani Enterprises Acquisition Of Mangalore Airport

CASE BACKGROUND

• The Airports Authority Employees Union's suit accused the Centre of being "illegal, capricious, and beyond the purview of the Airport Authority Act, 1994" in its decision to commercialize six airports across the country.
• The petition demands for a declaration that the entire bidding process for airport privatization, as a result of the Cabinet committee's decision dated November 8, 2018, is unconstitutional, arbitrary, and outside the jurisdiction of the Airport Authority Act, 1994.
• It also requested the court to declare the Cabinet's Decision dated 03.07.2019 acknowledging the bid of the 6th Respondent (Adani Enterprises Limited) as illegal and outside the scope of the Airport Authority Act, 1994, as well as the subsequent contract agreement dated 14.02.2020 between the 2nd Respondent (AAI) and the 6th Respondent as null and void.

CASE PROCEEDINGS

• Referring to Section 12 of the AAI Act, Senior Advocate Ashok Haranahalli, appearing for the petitioners, stated, "The premises of the airport can be leased, but my submission is that the entire airport is handed away to a private party for operations."
• It was pointed out that, according to the leasing agreement, there was no income sharing with the government, and the lease was entirely based on per-passenger fees. The government shall not get any of the cash generated by the lease of airport space.
• Also, it was said that leases were also available for airstrip, taxiways, and aircraft rescue fire services. They could not have been leased because they are part of the air traffic service." He went on to say. They effectively control aviation services, which is illegal under the AAI Act.
• It was also stated that AAI did not conduct any feasibility studies in order to set a reserve price for the project during the bidding process. All the important services have gone to one business, and there is no revenue share with the government for the next 50 years, which would be the lease duration of the airports.

CASE RELEVANCE

• The Karnataka High Court has reserved its judgment on a case brought by the Airports Authority Employees Union, which questions the decision of the Central Government and the Airports Authority of India to award Adani Enterprises Limited the contract to operate and manage Mangalore International Airport.

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