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Tuesday, Apr 04, 2006


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HC no to Reliance Airport plea

Our Bureau

Govt to sign pact today to develop Delhi, Mumbai airports


The objection
Reliance said AAI was signing agreement with rival consortia for handing over possession of the two airports.
The AAI Joint Workers Forum has also objected to the signing of the development agreement.

New Delhi , April 3

The Delhi High Court on Monday declined a plea made by Anil Ambani-owned Reliance Airport Developers (RAD) to grant an interim stay on the proposed transfer of ownership of the Delhi and Mumbai airports by the Airports Authority of India to the GMR and GVK groups, respectively.

The order comes a day before the Government is to sign the operation, management and development agreement (OMDA) with the two private sector parties so that work on developing the two metro airports can start.

The OMDA is considered the mother document under which the AAI grants the joint venture company the right to operate, maintain, develop, design, construct, upgrade, modernise, finance and manage the airports. Initially, the OMDA is for 30 years and can be extended for another 30 years.

During a "special mention" today, a Division Bench headed by Mr Justice Thirath Thakur declined to entertain the plea made by Reliance, which complained that AAI was signing an agreement with rival consortia for handing over possession of the two airports as part of its modernisation plan.

Linked to decision on tenders

The Bench while declining to stay the reported agreement recalled its own order that any action taken in this regard would be subject to the court's final decision on the tender controversy.

The AAI Joint Workers Forum has also objected to the signing of the OMDA, asking that the Government wait till the report of the tripartite committee looking into the role of AAI in modernising the two airports was firmed up. RAD moved the court in early February after it was unsuccessful in its attempt to be part of the proposed modernisation of the two metro airports.

The Government has chosen a consortia led by the GMR group to take up the development work in Delhi, while a consortia led by the GVK group has been shortlisted for the development of Mumbai airport.

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