HC ruling on airport bids

The Delhi High Court will pronounce its order on a Reliance petition seeking a stay on the process of privatisation of the Delhi and Mumbai airports tomorrow.

While seeking stay on the process of privatisation, the Reliance-ASA consortium submitted that if the government transferred its 74 per cent of equity in both Delhi and Mumbai airports to the successful private bidders and joint venture companies were formed, the decision of the court would become "infructous".

Reliance has challenged the award of contracts to modernise the airports in Delhi and Mumbai to GMR-Fraport and GVK-ACS, respectively.

Additional solicitor-general Gopal Subramaniam said the government and the successful bidders would abide by the orders of the court even if the shares were transferred.

All the parties, including the government and foreign collaborators, agreed that any steps taken or investment made in the process of privatisation would be at their peril.

Meanwhile, the Supreme Court has dismissed the appeal of an AAI workers' body challenging the government's decision.

The International Airports Authority of India Officers' Association had earlier moved the Delhi High Court but their writ petition was dismissed.

They argued in the Supreme Court that only Parliament could take the decision on modernisation and not the executive unilaterally.