Collection of ADF need no statutory nod: MIAL

Mumbai International Airport (MIAL) today submitted before the Delhi High Court that the Airport Development Fee (ADF) charged from domestic and international passengers is a tariff and it did not require any statutory approval.

Delhi International Airport (DIAL) submitted that the charge is inter-generational and is collected for the benefit of the future passengers.

Consumer organisations have challenged collection of ADF by private operators MIAL and DIAL in the court.

"ADF is not a tax but a tariff charged for providing landing, housing and parking facilities to air travellers," MIAL's counsel Harish Salve said.

He added that the money collected by them is put in an escrow account controlled by the government and it is only the government, which would have a say on when and what amount of money is to be released.

 

He also submitted that airports were taken on a lease from the government and as per the condition they were to invest money on its future developments.

After a marathon hearing of four and half hour a division bench headed by the Chief Justice A P Shah reserved the order. The judgment would come on Tuesday.

Senior counsel Abhishek Manu Singhvi appearing for DIAL submitted that as per the amended Airport Authority Act, DIAL has every right to collect ADF from air travellers and there is no legal restriction to collecting it.

Consumer organisations opposing ADF submitted that DIAL and MIAL are a lessee only and not a government organisation.

"They have no right to charge ADF, which is by nature of tax and could only be collected by the Airport Authority (the government body)," they submitted.

Yesterday Solicitor General Gopal Subramanium appearing for the government had submitted that the government has delegated its powers to the private airports to collect the ADF.

"...Any statutory agreement with private operators (under the AAI Act) (goes) with the assignment of (AAI's) functions also ..."  Subramanium had said, adding, "the government has assigned them the functions of the authority (AAI) while leasing them airports and by law the lease is treated as a statutory assignment."