Madras HC refuses to give extension for interim stay on privatising Chennai Airport

The Madras High Court has refused to give an extension to the interimstay, which was given on January 30, against the Government's decision to privatise the Chennai Airport. On January 29, the Madras High Court has granted an order of interim injunction, from proceeding any further with regard to the Requestfor Qualification (RFQ) invited from private parties for themanagement of Chennai Airport. The injunction was extended onFebruary 5, 2014 to February 6, 2014 and a counter affidavit has beenfiled on behalf of the third respondent (Airport Director, ChennaiAirport).

Later after three adjournments, the interim injunction order was alreadygranted stood extended. On February 10, 2014 P Wilson, AdditionalSolicitor General, had made a representation that because of theinterim order, the work at Airport has come to stand still and he insisted for early hearing of the injunction application.

Under this backdrop, the matter was listed on on Thursday, petitioner'scounsel have requested to adjourn the matter to first week of March2014. But Wilson opposed it stating that his arguments may be heard. However the petitioner's counsel insisted for making submission oneither side on first week of March 2014. "Since the Counsel for the petitioner is not ready for arguments, thismatter stands adjourned to March 5, 2014. It is made clear that the interim injunction, already granted and subsequently extended, is no textended today," said in the Order.

Earlier, in January the Court gave an interim stay, restraining the Governmentof India, Airport Authority of India and others from proceeding on the RFQ invited from private parties.

Justice R Subbiah granted the interim injunction on a petition filed by Airports Authority Employees' Union, and adjourned the matter to February 5. While questioning the legality of the decision to privatise the Chennai airport, both domestic and international terminals, the Union has said it would adversely affect the employees, besides going beyond the jurisdictionof the authority.

In the backdrop of continuous protest from the employees, the Government of India has plans to privatise sixairports in the country, recently floated an RFQ for managing theChennai and Lucknow airports.

Some of the companies which have shown interest in the Chennai projectinclude GVK, IL&FS Transportation Networks Limited, Essar Projects (India) Ltd, Essel Infraprojects Limited, CIAL, Fraport Saudi Arabia - KAIA, Abdullah Kirimli (Celebi Havacilik Holdings AS), GMR Airports Limited and Sahara Group.

The employees union says that the employees would lose job security if the facility is privatised, even as the government has assured thatno jobs will be lost due to the privatisation. The Union has also conducted relay hunger strike in connection with the AirportPrivatisation, later.

The employees union says that the authority has recently completed twonew terminals with a total investment of over Rs 2,000 crore andprivatising at this point of time would increase the user development fee and airport development fee for the customers.