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This is an archive article published on February 21, 2006

SC quashes PIL against airport bidding process

The Supreme Court today dismissed a public interest litigation PIL seeking quashing of the entire bidding process for modernisation of Mum...

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The Supreme Court today dismissed a public interest litigation PIL seeking quashing of the entire bidding process for modernisation of Mumbai and Delhi airports and imposed a fine of Rs 10,000 against the advocate who had challenged the procedure adopted by the government.

8216;8216;The petition of this nature is nothing except a total abuse of power and remedial measures of public interest,8217;8217; a bench comprising Chief Justice Y.K. Sabharwal and Justice C.K. Thakker said.

The PIL filed by advocate Aditya Kumar Chaudhary had sought quashing of the bidding process for modernisation of the two airports on the ground that evaluation of the bidding was irregular and arbitrary.

The bench wanted to know from the advocate whether there were any other documents apart from the newspaper reports to substantiate the allegations pointed out by him in the petition. 8216;8216;When the affected parties have approached the appropriate court why you have filed the petition,8217;8217; the bench asked.

In another significant verdict, the SC today paved the way for privatisation of all existing airports and also new airports in future. The apex court dismissed a petition by the Airport Authority of India AAI officers association challenging the privatisation of Mumbai and Delhi airports.

Senior counsel R.K. Jain arguing for the petitioners8217; association contended that new airports could be constructed with joint ventures and private participation but the existing ones 8216;8216;have to be under the AAI8217;8217; as per the law.

The apex bench rejected the argument clearly implying that even the existing airports could be privatised and joint ventures could be created.

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The bench maintained that AAI is a creation of Parliament vide Airports Authority of India Act and pointed out that the same Act provided for creation of joint ventures and upheld an earlier decision of the Delhi High Court that private participation in airports could be done by the executive government and it was well within the 8216;8216;executive domain8217;8217; of a ruling government.

HC to rule on stay petition today

NEW DELHI: The Delhi High Court today reserved till tomorrow the passing of its order on Reliance Airport Developers8217; petition seeking a stay on capital and equity transfer from Airports Authority of India AAI to the two rival consortium who had won bids for developing Delhi and Mumbai airports. Justice B.N. Chaturvedi and T. Thakur reserved the order following an undertaking from the Centre and the two consortium, GMR Fraport, and GVK Industries that any transfer of equity or capital, or any agreements with the AAI, during this period, 8216;8216;would be subject to the final verdict of the High Court8217;8217;, in the case where Reliance has challenged the awarding of contracts to the consortium.

 

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