Tata group investment in GMR Airports hits AAI regulatory hurdle

Rs 8,000 cr funding violates norms preventing airlines from holding 10% in facility


The plan of the Tata group and two foreign entities to invest Rs 8,000 crore in GMR Airports (GAL) might face more regulatory delays because it reportedly violates a clause that prevents airline groups from holding more than 10 per cent stake in Delhi International Airport (DIAL). The Tatas hold majority stakes in two airlines — Vistara and Air Asia India. If the deal goes through, the Tata group will have a 20 per cent stake in GAL. This would give it a 12.8 per cent stake in DIAL. GAL has a 64 per cent stake in DIAL, while the Airports Authority of India (AAI) ...