AAI officers move SC, Reliance may challenge bids

The privatisation of the Delhi and Mumbai airports is moving in the direction of courts of law.

The Airports Authority of India Officers' Association has moved the Supreme Court against a Delhi High Court verdict last September dismissing its petition challenging the government's decision to let private firms hold 74 per cent equity in the joint ventures executing the airports modernisation project.

On the other hand, Reliance Airport Developers, part of Anil Dhirubhai Ambani Enterprises, is likely to move the Delhi High Court tomorrow, challenging the government's decision to award contracts to GMR and GVK for the Delhi and Mumbai airports, respectively.

The Reliance-ASA combine had submitted the highest financial bid for the Delhi airport. Legal sources said the case might come up for hearing on Friday.

A spokesperson for the company declined to comment.

The AAI officers' association, in a special leave petition, said the high court erred in holding that the government could allow 74 per cent private equity in joint ventures under Section 12(3)(r) of the Airports Authority of India Act, 1994, through an executive order.

As interim relief, the association sought from the court a direction to the civil aviation ministry and the AAI restraining them from going ahead with the formation of joint venture companies for operation, development and management of the airports.

Terming it as a case of excessive delegation, the appellant said the government could not have done it without the approval of Parliament under Section 43 of the Act.

The high court had, in September last year, dismissed the association's petition.

Reliance, which lost out in the race, yesterday talked of "a complete departure from tender conditions" that was "'untenable and unconstitutional".

"To our utter shock and surprise, substantial changes to published tender conditions have been telephonically communicated, in strange circumstances, barely two hours before opening of the financial bids," said a spokesperson for the company.