MIAL violated norms used PSF money

Mumbai International Airport Private Limited (MIAL), operator of the Mumbai Airport, violated the orders of the government and used the money collected from Passenger Services Fee (PSF), the CAG has said.

“During the year 2007-08 and 2008-09, MIAL had withdrawn Rs 15.22 crore from the PSF for deploying private security agencies at the airport, consultancy charges and for purchase of X-ray screening machine in violation of the orders of the government regulation and resulted in loss to the GOI,” said the audit body’s report tabled in Parliament on Thursday.

PSF is collected from every passenger and is used to fund the security requirements across the country. According to the rules, MIAL has to deposit all the money collected from PSF into an escrow account. The money is being used to make payments to the Central Industrial Security Force, responsible for guarding the country’s airports.

Any surplus in the Escrow Account is transferable by MIAL to the Airport Authority of India for making payments to CISF at other airports.

The government auditors directed the civil aviation ministry to direct MIAL to immediately remit the money back into the escrow account and conduct an audit periodically of all such account. It also asked the ministry to obtain approval of the home ministry for engagement of private agencies by MIAL.