Challenge to privatisation of Mangaluru International Airport: Karnataka High Court reserves judgment

The Karnataka High Court on Wednesday reserved its judgment in a public interest litigation (PIL) challenging the privatisation of Mangaluru International Airport. .The plea had sought to quash a 2019 cabinet decision approving the bid to lease out three airports including the one at Mangaluru to Adani Enterprises..The order was reserved by a Division Bench of Acting Chief Justice Satish Chandra Sharma and Justice Sachin Shankar Magadum..The petition challenging the Centre's decision to privatize six airports, termed the same was "illegal, arbitrary and beyond the scope of the Airport Authority Act, 1994." However, the petition particularly deals with only the Mangaluru International Airport. .Senior Advocate Ashok Haranahalli, appearing for the petitioners, referred to Section 12 of the Airports Authority of India Act and submitted,"The premises of the airport can be leased but my submission is that the entire airport is given away to a private person for operations.".Referring to the lease agreement, he pointed out that there was no revenue sharing with the government and that the entire fixation of the lease is on per passenger fee. Haranhalli further submitted that, "Runways and taxiways and aircraft rescue fire buildings are also leased out. These are part of air traffic service, they could not have been leased at all...Virtually, the control over aviation services is given to them, it is contrary to AAI Act.".Even though it is called a Public-Private Partnership (PPP) project, there is no revenue generated for formulation of PPP partnership, he pointed out. "The airport is given to a third party, which is not in consonance with the policy of Public-Private Partnership model. This is not a partnership but just giving away.".Vehemently opposing these submissions, Additional Solicitor General MB Nargund, appearing for the Union government, firstly questioned the petition's maintainability. The Court was further informed that a branch of the same petitioner union had filed a plea before the Kerala High Court, which was rejected. The present petition is thus not maintainable, it was contended. .Kerala High Court junks challenge to Centre's lease of Thiruvananthapuram Airport to Adani, states "feeble challenge is devoid of merit ".However, this argument was countered by Haranhalli, who submitted that the petition before the Kerala High Court was limited to the lease granted in favour of Thiruvananthapuram Airport to Adani Group. The order did not disentitle him from challenging the privatisation policy as regards the Mangaluru Airport before this Court, he added..Adding on, Nargund submitted that, "What the government thought that in order to generate funds for new establishment of secondary and tertiary airports, every time it is practically difficult for the government to allot funds. Instead of that, a system has been developed wherein the money which is generated from here (leasing of the airports), AAI will use this particular money for purpose of creating new airports. The object is not only to develop Mangalore and Mumbai airports, but even for development of airports in Gulbarga, Bidar etc. These funds will be diverted. Taking this holistic approach, a scheme has been brought into force."."The present petition was filed before the Karnataka High Court when the matter was pending for judgment before the Kerala High Court", pointed out Nargund, while arguing that the petition ought to be dismissed. Airports Authority of India, another respondent in the matter, concurred with the arguments made by the Central government. .The Court had issued notice in the matter in February. .[Privatisation of Mangaluru Airport] Karnataka High Court seeks response from Central government, Airports Authority of India, Adani Group.Follow Bar and Bench channel on WhatsAppDownload the Bar and Bench Mobile app for instant access to the latest legal news.