The Competition Commission of India (CCI) has dismissed allegations of abuse of dominant position against GMR Airports Limited and Delhi International Airport Limited (DIAL) in a high-profile case involving the awarding of parking and lounge contracts at the Indira Gandhi International Airport (IGI), Delhi. 

The case was filed by the NGO ‘Fight Against Corruption’ and the Contractor Council of India, accusing the GMR-led consortium of violating provisions of Section 4 of the Competition Act, 2002.

The complainants alleged that GMR, through DIAL, was selectively awarding contracts without following competitive bidding processes, thereby monopolising critical services like parking and lounge operations at the airport. They also claimed that the consortium charged excessive fees and engaged in practices that excluded other potential market players.

However, after a detailed examination of the submissions by both parties, the CCI found no merit in the allegations. The Commission noted that DIAL had conducted competitive bidding processes for awarding the parking and lounge contracts. In fact, the parking contract was awarded to a consortium involving Greenwich and Tenaga Parking Services after a transparent bidding process, leading to the creation of the special purpose vehicle (SPV) Delhi Airport Parking Services Private Limited (DAPSL).

Similarly, the lounge services contract was awarded to Encalm through competitive bidding, and the Commission found no evidence to suggest any relation between Encalm and DIAL or its parent company GMR Airports Limited.

The CCI also addressed concerns about the alleged imposition of a 13 per cent fee on tenders. It concluded that this charge was a long-standing practice established by the Airports Authority of India (AAI) even before the execution of the Operation, Management, and Development Agreement (OMDA). The charge has been uniformly applied to all service providers and remains consistent with practices at other major airports in India.

Further, the CCI acknowledged that OMDA allows DIAL the right to subcontract third-party entities for providing non-aeronautical services, including parking and lounge services. The Commission concluded that the complainants failed to provide any substantial evidence to establish violations of Sections 4(2)(a)(i), 4(2)(b)(i), 4(2)(c), or 4(2)(e) of the Act.

In its order, the CCI also granted confidentiality to certain documents submitted by DIAL and GMR Airports Limited for a period of three years. The Commission’s ruling provides relief to GMR Airports Limited and DIAL, allowing them to continue operating the airport’s commercial services as per the existing agreements.

Published on March 23, 2025