THE AIRPORTS AUTHORITY OF INDIA ACT, 1994 NO.

55 OF 1994
As Amended by the Airports Authority of India (Amendment) Act 2003

December 2011

Prof. V. A. Kelkar

Purpose / Aim
An Act to provide for the constitution of the airports Authority of India and for the transfer and vesting of the undertakings of the International Airports Authority of India and the National Airports Authority to and in the Airports Authority of India so constituted for the better administration and cohesive management of airports and civil enclaves whereat air transport services are operated or are intended to be operated and of all aeronautical communication stations 1for the purposes of establishing or assisting in the establishment of airports* and for matters connected therewith or incidental thereto. 1*Added by section 2 of AAI Amendment Act, 2003

Applicability
(a) all airports whereat air transport services are operated or are intended to be operated, other than airports and airfields belonging to, or subject to the control of, any armed force of the Union; 2 *(aa) all private airports in so far as it relates to providing air traffic service, to issue directions under Section 37 to them and for the purposes of Chapter VA. (b) all civil enclaves; (c) all aeronautical communication stations; and (d) all training stations, establishments and workshops relating to air transport services 2* Added by section 3 of AAI Amendment Act, 2003.

Definitions
airport means a landing and taking off area for aircrafts, usually with runways and aircraft maintenance and passenger facilities and includes aerodrome as defined in clause (2) of section 2 of the Aircraft Act, 1934; air traffic service includes flight information service, alerting service, air traffic advisory service, air traffic control service, area control service, approach control service and airport control service; Authority means the Airports Authority of India constituted under section 3; civil enclave means the area, if any, allotted at an airport belonging to any armed force of the Union, for use by persons availing of any air transport services from such airport or for the handling of baggage or cargo by such service, and includes land comprising of any building and structure on such area; heliport means an area, either at ground level or elevated on a structure, used or intended to be used for the landing and take-of of helicopters and includes any area for parking helicopters and all buildings and structures thereon or ppertaining thereto; International Airports Authority means the International Airports Authority of India constituted under section 3 of the International Airports Authority Act, 1971;

(l) member means a member of the Authority and includes the Chairperson, but does not include, for the purposes of sections 4,5,6 and 7, an ex officio member referred to in clause (b) of sub-section (3) of section 3; 3* private airport means an airport owned, developed or managed by (i) any person or agency other than the Authority or any State Government, or (ii) any person or agency jointly with the Authority or any State Government or both where the share of such person or agency as the case may be in the assets of the private airport is more than fifty per cent
3* Added by section 4 of AAI Amendment Act, 2003

Composition of Authority
(3). (a) a Chairperson to be appointed by the Central Government; (b) the Director General of Civil Aviation, or an officer not below the rank of the Deputy Director General of Civil Aviation, to be appointed by the Central Government, ex officio; (c) not less than eight and not more than fourteen members to be appointed by the Central Government (4) The Chairperson shall be a whole-time member and other members referred to in clause (c) of sub-section (3) may be appointed as whole-time or part-time members as the Central Government may think fit. (5) The Chairperson and the members referred to in clause (c) of subsection (3) shall be chosen from among persons who have special knowledge and experience in air transport or any other transport services, industry, commercial or financial matters or administration and from among persons who are capable of representing organizations of workers and consumers.

Comments How is Chairman / M.D. of a Corporation

Conditions of Service
5. The Central Government may (a) terminate the appointment of any whole-time member, who is not a servant of the Government, after giving him notice for a period of not less than three months or, in lieu thereof, on payment of an amount equal to his salary and allowances, if any, for a period of three months; (b) terminate the appointment of any part-time member who is not a servant of the Government after giving him notice for such period as may be prescribed; and (2) The other conditions of service of the members shall be such as may be prescribed. (3) Any member may resign his office by giving notice in writing for such period as may be prescribed to the Central Government and, on such resignation being notified in the Official Gazette by the Government, such member shall be deemed to have vacated his office.

Rules of procedure
8. (1) The Authority shall meet at such times and places, and shall observe such rules of procedure in regard to the transaction of the business at its meetings(including the quorum at such meetings) as may be provided by regulations. (2) The Chairperson, or, if for any reason he is unable to attend any meeting of the Authority, any other member chosen by the members present at the meeting shall preside at the meeting. (3) All questions which come up before any meeting of the Authority shall be decided by a majority of the votes of the members present and voting, and , in the event of an equality of votes, the Chairperson, or in his absence, the person presiding, shall have and exercise a second or casting vote. 11. In the discharge of its functions under this Act, the Authority shall act, so far as may be, on business principles. Comments a) Selection of PO by vote ? b) Casting vote ?

FUNCTIONS OF THE AUTHORITY

12. (1) Subject to the rules, if any, made by the Central Government in this behalf, it shall be the function of the Authority to manage the airports, the civil enclaves and the aeronautical communication stations efficiently. (2) It shall be the duty of the Authority to provide air traffic service and air transport service at any airport and civil enclaves. (3) Without prejudice to the generality of the provisions contained in sub-sections (1) and (2), the Authority may (a) plan, develop, construct and maintain runways, taxiways, aprons and terminals and ancillary buildings at the airports and civil enclaves; 4*(aa) establish airports, or assist in the establishment of private airports by rendering such technical, financial or other assistance which the Central Government may consider necessary for such purpose. (b) plan, procure, install and maintain navigational aids, communication equipment, beacons and ground aids at the airports and at such locations as may be considered necessary for safe navigation and operation of aircrafts; (c) provide air safety services and search and rescue, facilities in co-ordination with other agencies; *4 Added by section 5 of AAI Amendment Act, 2003

Comments i) Reasons for including aa) ii) Implications

(d) establish schools or institutions or centers for the training of its officers and employees inregard to any matter connected with the purposes of this Act; (f) establish and maintain hotels, restaurants and restrooms at or near the airports; (g) establish warehouses and cargo complexes at the airports for the storage or processing of goods; (h) arrange for postal, money exchange, insurance and telephone facilities for the use of passengers and other persons at the airports and civil enclaves; (k) develop and provide consultancy, construction or management services, and undertake operations in India and abroad in relation to airports, air-navigation services, ground aids and safety services or any facilities thereat; (n) form one or more companies under the Companies Act, 1956 or under any other law relating to companies to further the efficient discharge of the functions imposed on it by this Act; (o) take all such steps as may be necessary or convenient for, or may be incidental to, theexercise of any power or the discharge of any function conferred or imposed on its by this Act; (q) establish training institutes and workshops;

5* 12A (1) Notwithstanding anything contained in this Act, the Authority may, in the public interest or in the interest of better management of airports, make a lease of the premises of an airport (including buildings and structures thereon and appertaining thereto) to carry out some of its functions under section 12 as the Authority may deem fit: No lease under sub-section (1) shall be made without the previous approval of the Central Government. (3) Any money, payable by the lessee in terms of the lease made under sub- section (1), shall form part of the fund of the Authority and shall be credited thereto as if such money is the receipt of the Authority for all purposes of section 24. (4) The lessee, who has been assigned any function of the Authority under subsection (1), shall have all the powers of the Authority necessary for the performance of such functions in terms of the lease Discussion - Implications a) Standard terms and conditions & Approval b) Approval for specific cases needed ?

PROPERTY AND CONTRACT

13. (1) On and from the appointed day, there shall be transferred to, and vest in, the Authority constituted under section 3, the undertakings of the International Airports Authority and the National Airports Authority. (2) The undertaking of the International Airports Authority or the National Airports Authority which is transferred to, and which vests in, the Authority under sub-section (1) shall be deemed to include all assets, rights, powers, authorities and privileges and all property movable and immovable, real or personal, corporeal or incorporeal, present or contingent, of whatever nature and wheresoever situate,. . . 15. With effect from the appointed day, all licenses, permits, quotas and exemptions, granted to the International Airports Authority or the National Airports Authority in connection with the affairs and business of the International Airports Authority, or as the case may be, the National Airports Authority, under any law for the time being in force, shall be deemed to have been granted to the Authority in which the undertakings of the International Airports Authority and the National Airports Authority have vested by virtue of this Act. 18. (5) The officers and other employees who have retired before the appointed day from the service of the International Airports Authority or the National Airports Authority and are entitled to any benefits, rights or privileges shall be entitled to receive the same benefits, rights or privileges from the Authority in which the undertaking of the International Airports Authority and the National Airports Authority have vested.

Comments - Why (5) ?

19. Any land required by the Authority for the discharge of its functions under this Act shall be deemed to be needed for a public purpose and such land may be acquired for the Authority under the provisions of the Land Acquisition Act, 1894 or of any other corresponding law for the time being in force. 21. (1) Every contract shall, on behalf of the Authority, be made by the Chairperson or such other member or such officer of the Authority as may be generally or specially empowered in this behalf by the Authority and such contracts or class of contracts as may be specified in the regulations shall be sealed with the common seal of the Authority: Provided that no contract exceeding such value or amount as the Central Government may, from time to time, by order, fix in this behalf shall be made unless it has been previously approved by the Authority: Provided further that no contract for the acquisition or sale of immovable property or for the lease of any such property for a term exceeding thirty years and no other contract exceeding such value or amount as the Central Government may, from time to time, by order, fix in this behalf shall be made unless it has been previously approved by the Central Government. (2) Subject to the provisions of sub-section (1), the form and manner in which any contract shall be made under this Act shall be such as may be specified by regulations. (3) No contract which is not in accordance with the provisions of this Act and the regulations shall be binding on the Authority

FINANCE,ACCOUNTS AND AUDIT

22. The Authority may,(i) With the previous approval of the Central Government, charge fees, or rent(a) for the landing, housing or parking of aircraft or for any other service or facility offered in connection with aircraft operations at any airport, heliport or airstrip; Explanation. - In this sub-clause aircraft does not include an aircraft belonging to any armed force of the Union and aircraft operations does not include operations of any aircraft belonging to the said force (b) for providing air traffic services, ground safety services, aeronautical communications and navigational aids and meteorological services at any airports and at any aeronautical communication station; (c) for the amenities given to the passengers and visitors at any airport, civil enclave, heliport or airstrip; (ii) with due regard to the instructions that the Central Government may give to the authority, from time to time, charge fees or rent from persons who are given by the authority any facility for carrying on any trade or business at any airport, heliport or airstrip.

622A. The Authority may, after the previous approval of the Central Government in this behalf, levy on, and collect from, the embarking passengers at an airport, the development fees at the rate as may be prescribed and such fees shall be credited to the Authority and shall be regulated and utilized in the prescribed manner, for the purposes of(a) funding or financing the costs of upgradation, expansion or development of the airport at which the fee is collected; or (b) establishment or development of a new airport in lieu of the airport referred to in clause (a); or (c) investment in the equity in respect of shares to be subscribed by the Authority in companies engaged in establishing, owning, developing, operating or maintaining a private airport in lieu of the airport referred to in clause (a) or advancement of loans to such companies or other persons engaged in such activities.

6 Inserted by section 7 of the AAI Amendment Act, 2003.

23. The Central government may, after due appropriation made by Parliament by law in this behalf,(a) provide any capital that may be required by the Authority for the discharge of its functions under this Act or for any purpose connected therewith on such terms and conditions as that Government may determine; (b) pay to the Authority, on such terms and conditions as the Central Government may determine, by way of loans or grants such sums of money as that Government may consider necessary for the efficient discharge by the Authority of its functions under this Act. 24. (1) The Authority shall have its own fund and all receipts of the Authority shall be credited thereto and all payments of the authority shall be made there from. (2) The Authority shall have power, subject to the provisions of this Act, to spend such sums as it thinks fit to cover all administrative expenses of the authority and on objects or for purposes authorized by this Act and such sums shall be treated as expenditure out of the fund of the Authority.

Accounts and Audit

28. (1) The Authority shall maintain proper accounts and other relevant records and prepare an annual statement of accounts including the profit and loss account and the balance-sheet in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor- General of India. (3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Authority shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General has in connection with the audit of Government accounts and, in particular shall have the right to demand the production of books, accounts, connected vouchers, documents and papers and inspect any of the offices of the Authority. (4) The accounts of the Authority as certified by the Comptroller and AuditorGeneral of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before both Houses of Parliament.

EVICTION OF UNAUTHORISED OCCUPANTS, ETC., OF AIRPORT PREMISEs

28B. The Authority may, by general or special order in writing, appoint such number of its officers, as it thinks fit, to be eviction officers for the purposes of this Chapter, and define the local limits within which, or the categories of airport premises in respect of which, the eviction officers shall exercise the powers conferred and perform the duties imposed, on eviction officers by or under this Chapter. 28D. (1) If, after considering the cause, if any, shown by any person in pursuance of a notice under section 28C and any evidence produced by him in support of the same and after personal hearing, if any, given under sub-clause (ii) of clause (b) of sub-section (2) of section 28C, the eviction officer is satisfied that the airport premises are in unauthorised occupation, the eviction officer may make an order of eviction, for reasons to be recorded therein, directing that the airport premises shall be vacated, on such date as may be specified in the order, by the persons who may be in occupation thereof, and cause a copy of the order to be affixed on the outer door or some other conspicuous part of the airport premises. (2) If any person refuses or fails to comply with the order of eviction on or before the date specified in the order or within fifteen days of the date of publication under sub-section (1), whichever is earlier, the eviction officer or any other officer duly authorised by the eviction officer in this behalf may, after the date so specified or after the expiry of the period aforesaid, whichever is earlier, evict that person from, and take possession of, the airport premises and may, for that purpose, use such force as may be necessary.

28F. (1) No person shall(a) erect or place or raise any building or any movable or immovable structure or fixture; (b) display or spread any goods; (c) bring or keep any cattle or other animal, on or against or in front of any airport premises except in accordance with the authority (whether by way of grant or any other mode of transfer) under which he was allowed to occupy such airport premises. (3) Where any movable structure or fixture has been erected, placed or raised, or any goods have been displayed or spread or any cattle or other animal has been brought or kept on any airport premises in contravention of the provisions of sub-section (1) by any person, the eviction officer may, by order, remove or cause to be removed without notice, such structure, fixture, goods, cattle or other animal, as the case may be, from the airport premises and the cost of such removal shall be recoverable from such person as an arrear of land revenue

(2) Where any person is, or has at any time been, in unauthorised occupation of any airport premises, the eviction officer may, having regard to such principles of assessment of damages as may be prescribed, assess the damages on account of the use and occupation of such premises and may, by order, require that person to pay the damages within such time and in such instalelments as may be specified in the order.
28H. An eviction officer shall, for the purpose of holding any inquiry into this Chapter, have the same powers, as are vested in a civil court under the Code of Civil Procedure, 1908, while trying a suit in respect of the following matters, namely:(a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) any other matter which may be prescribed.

Tribunal
28I. (1) The Central Government shall, by notification in the Official Gazette, establish a Tribunal, to be known as the Airport Appellate Tribunal, to exercise the jurisdiction, powers and authority conferred on it by or under this Act. (2) The Tribunal shall consist of a Chairperson (hereinafter referred to in this Act, as the Chairperson of the Tribunal). (3) The head office of the Tribunal shall be at New Delhi. The Chairperson of the Tribunal shall be appointed by the Central Government after consultation with the Chief Justice of India. 28K. (1) Any person aggrieved by an order of the eviction officer under the Chapter may, within fifteen days from the date of such order, prefer an appeal to the Tribunal in such form as may be prescribed: Provided that the Tribunal may entertain any appeal after the expiry of the said period of fifteen days, but not after the period of thirty days . . .. . On receipt of an appeal under sub-section (1), the Tribunal shall, after giving the appellant and the eviction officer an opportunity of being heard, pass such order as it thinks fit. (3) The Tribunal shall dispose of the appeal within thirty days from the date of filing the appeal (4) An order of the Tribunal passed under sub-section (2) shall be executable as a decree of a civil court and for executing the same the Tribunal shall send a copy thereof to the civil court having jurisdiction which shall execute the same, as expeditiously as may be possible, as if such order is a decree passed by that court.

28L. (1) The Tribunal shall not be bound by the procedure laid down in the Code of Civil Procedure, 1908 but shall be guided by the principles of natural justice, and, subject to the other provisions of this Act and of any rules made by the Central Government, the Tribunal shall have power to lay down and regulate its own procedure including the fixing of places and times of its inquiry and deciding whether to sit in public or in private. (2) The Tribunal shall have, for the purpose of discharging its functions under this Chapter, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908, while trying a suit in respect of the following matters, namely:(a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) any other matter which may be prescribed. (3) Any proceeding before the Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196, of the Indian Penal Code and the Tribunal shall be deemed to be a civil court for all the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.

Penalty 28N. (1) Whoever, unlawfully occupies any airport premises, shall be punishable with imprisonment for a term which may extend to six years and with fine. (2) Whoever fails to comply with any order of the eviction officer or the Tribunal under this Chapter shall be punishable with imprisonment for a term which may extend to seven years and with fine. (3) If any person who has been evicted from any airport premises under this Chapter again occupies the premises without authority for such occupation, he shall be punishable with imprisonment for a term which may extend to ten years and with fine. (4) The court may, while convicting a person under subsection (3), make an order for evicting that person summarily and he shall be liable to such eviction without prejudice to any other action that may be taken under this Chapter

Control , Delegation etc.

29. (1) The Authority shall, as soon as may be after the end of each financial year, prepare and submit tothe Central Government in such form as may beprescribed a report giving an account of its activities during that financial year and the report shall also give an account of the activities which are likely to be undertaken by the Authority during the next financial year. (2) The Central Government shall cause such report to be laid before both Houses of Parliament as soon as may be after it is submitted. 30. The Authority may, by general or special order in writing, delegate to the Chairperson or any other member or to any officer of the authority, subject to such conditions and limitations, if any, as may be specified in the order, such of its powers and functions under this Act,( except the powers under section 42) as it may deem necessary., 32. All officers and employees of the Authority shall, while acting or purporting to act in pursuance of the provisions of this Act or of any rule or regulation made there under, be deemed to be public servants within the meaning of section 21 of the Indian Penal Code.

35. For the purposes of the Income--tax Act, 1961 or any other enactment for the time being in force relating to income-tax or any other tax on income profits or gains, the Authority shall be deemed to be a company within the meaning of the Income-tax Act, 1961 and shall be liable to tax accordingly on its income, profits and gains. 36. The Authority may undertake to carry out on behalf of any person any works or services or any class of works or services on such terms and conditions as may be agreed upon between the Authority and the person Concerned 38. (1) If, at any time, the Central Government is of opinion that in the public interest it is necessary or expedient so to do, it may, by order, direct the Authority to entrust the administration, management or similar other functions of any airport, heliport, airstrip, civil enclave, aeronautical communication station, or any other agency or department of any airport, heliport, airstrip civil enclave or aeronautical communication station with effect from such date and to such person as may be specified in the order and the Authority shall be bound to comply with such direction:

40. (1) Without prejudice to the foregoing provisions of this Act, the Authority shall, in the discharge of its functions and duties under this Act, be bound by such directions on questions of policy as the Central Government may give in writing to it from time to time: Provided that the Authority shall, as far as practicable, be given opportunity to express its views before any direction is given under this sub-section. (2) The decision of the Central Government whether a question is one of policy or not shall be final. 41. (1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Act. (d) the provisions subject to which officers and other employees may be appointed by the Authority and the category of officers to be appointed after approval of the Central Government under the proviso to subsection (1) of section 10; 9(ee) the rate of development fees and the manner of regulating and utilizing the fees under section 22A

Power to make regulations

42. (1) The Authority may make regulations not inconsistent with this Act and the rules made there under to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this Act. (d) the storage or processing of goods in any warehouse established by the Authority under clause (g) of sub-section (3) of section 12 and the charging of fees for such storage or processing; (h) securing the safety of aircraft, vehicles and persons using the airport or civil enclave and preventing danger to the public arising from the use and operation of aircraft in the airport or civil enclave; (k) prohibiting or restricting access to any part of the airport or civil enclave; (o) generally for the efficient and proper management of the airport or civil enclave. (4) No regulation made by the Authority under this section shall have effect until it has been approved by the Central Government and published in the Official Gazette.

45. In section 5 of the Aircrafts Act, 1934, in sub-section (2),(a) in clause (b), for the words and figures the International Airports Authority Act, 1971 or the National Airports Authority Act, 1985, the words and figures the Airports Authority of India Act, 1994 shall be substituted; (b) proviso to clause (b) shall be omitted. 46. (1) On and from the appointed date,(i) the International Airports Authority Act, 1971 and the National Airports Authority Act, 1985 shall stand repealed; (ii) the International Airports Authority and the National Airports Authority constituted under the aforesaid Acts shall cease to exist.