'Adani Has No Previous Experience In Managing Airports' : Kerala Govt Moves SC Against Leasing Thiruvananthapuram Airport To Adani Group

The Kerala government has moved the Supreme Court challenging the move of the Airports Authority of India to lease out Thiruvananthapuram Airport to Adani Enterprises.

The Government has moved top court challenging the "arbitrary and illegal action of the Airports Authority of India".

On October 19, the High Court of Kerala had dismissed the writ petitions filed against the tender given to Adani Enterprises to operate, manage & develop the Thiruvananthapuram International Airport.

The Special Leave Petition filed against the High Court judgment states :

"The writ petition is filed on various grounds, including absence of public interest in the grant of such concession, the same not being in the interest of better management of the Airport, the entire proceedings including tender process being vitiated by malafides and also in violation of the provisions of the Airport Authority of India Act, 1994 and the attempted grant of concession being in violation of an earlier undertaking by the Ministry of Civil Aviation, Government of India and rejecting the proposal of the State Government to form a Special Purpose Vehicle (SPV) to take over and run the Airport on revenue sharing basis."

The plea stated that the grant of concession to Adani is in violation of an earlier undertaking by the Ministry of Civil Aviation which had rejected the proposal of state government to form a Special Purpose Vehicle (SPV) to take over and run the Airport on a revenue-sharing basis. 

It is submitted that Adani has "no previous experience in managing airports", and that granting it such a concession is not in public interest, being violative of the provisions of the Airports Authority of India Act, 1994.

Making a case for the state government, the plea contends that Kochi International Airport at Nedumbasserry, Ernakulam is operated by it and the sponsored Cochin International Airport Limited (CIAL) is one of the leading airports the world over.

 It is submitted that the Chief Minister of Kerala, on 21.11.2018, wrote to the Civil Aviation Minister, Government of India informing that the State Government has been actively associated in transferring land to the Airport Authority of India, without having any legal obligation to do so, on the explicit understanding that the State of Kerala would be associated by forming an SPV whenever the Airport Authority felt the need to transfer the management of the airport to any entity. 

Kerala Government states that the Government of India had given an assurance to the State of Kerala that when a decision is taken to induct private sector into the management of Thiruvananthapuram Airport, Government of India would consult the State Government taking into account the contribution made by the State towards acquisition of land to the airport, also shows that the expectations of the State Government is based on the statement made by the Government of India which has the duty of making the decision. 

"It is submitted that crystallisation of such the legitimate expectation cannot be varied on an unfair and illegal act on the part of the Government of India," plea states.