SC orders civil aviation ministry to submit Nagpur airport tender files

In 2020, Maharashtra govt cancelled the tender process that had awarded the contract for the upgradation and operation of the Nagpur airport to GMR Group. GMR Group has challenged this cancellation

The Supreme Court on Tuesday directed the Civil Aviation Ministry to submit file notes related to the annulment of the tender process for the Babasaheb Ambedkar International Airport in Nagpur. The order comes as part of the ongoing legal battle involving the Ministry, the Airports Authority of India (AAI), and the GMR Group, which has been vying to operate the airport.

Background of the case

The legal dispute traces back to a decision by the Maharashtra government in 2020 to cancel the tender process that had initially awarded the contract to GMR Group for the upgradation and operation of the Nagpur airport.

GMR, which emerged as the highest bidder in 2019, challenged the cancellation in the Bombay High Court. The High Court ruled in favour of GMR, describing the government’s action as “arbitrary and unfair”. This decision was upheld by the Supreme Court in May 2022, when it dismissed the appeals filed by the Central government, the Maharashtra government, and the AAI against the High Court’s ruling.

The current proceedings are based on curative petitions filed by the Ministry and the AAI against the Supreme Court’s earlier judgment in favour of GMR. In February, the Court agreed to review and hear these petitions in detail.

Supreme Court’s latest order

A special bench led by Chief Justice DY Chandrachud has now asked the government to place on record by Friday the file related to the annulment decision, which was previously challenged before the Bombay High Court.

Solicitor General Tushar Mehta, representing the Centre and the AAI, argued that the Bombay High Court delivered its judgment without involving the AAI or the government as parties to the case. He emphasised that the AAI performs sovereign functions on behalf of the state, with certain operations at airports outsourced to private entities under the operation, management, and development agreement (OMDA). Mehta contended that crucial functions such as emigration, security, and customs remain under state control, making the Centre and the AAI necessary parties in such legal matters.