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INTERNATIONAL, AIRPORTS AUTHORITY ACT, 1971

INTERNATIONAL, AIRPORTS AUTHORITY ACT, 1971

43 of 1971

8th December, 1971

STATEMENT OF OBJECTS AND REASONS The International Airports at Delhi, Bombay, Calcutta and Madras are the aerial gateways of India, and are becoming increasingly important in developing India's bade and tourism. Owing to rapid growth of traffic, and the increasing impact of technological development in the shape of large capacity sub-sonic and supersonic jet aircraft the organisation and management of these four international airports will assume increasing importance in the years to 2. To determine and advise Government on the action required to be taken to provide these international airports with the buildings, equipment, facilities, and organisation necessary to cater to the needs of passenger and goods traffic, baggage and cargo handling, and other related matters, a high-powered International Airports Committee was appointed in July, 1967 under the Chairmanship of Mr. J.R.D. Tata. The Committee has made a number of recommendations for the phased development of the four international airports spread over a period of fifteen years, corresponding to the Three Five Year Plans commencing from April, 1969. The recommendations of the Committee would involve an estimated total expenditure of Rs. 106.12 crore Rs. 63.56 crore to be spent in Fourth Plan (1969-1974), Rs. 35.54 crore in the Fifth Plan (1974-1979), and the balance of Rs. 7.02 crore to spill over to the Sixth Plan. A provision of about Rs. 37.00 crore' (excluding Rs. 10 crore for provision of communication and navigation aids) has been made for the aforesaid four international airports in the Fourth Five Year Plan of the Civil Aviation Department. 3. An important point made by the committee is that the success in spending effectively the large outlays for the creation of the new airport facilities will depend largely on the speed and flexibility with which the project is launched and administered. Keeping in view the compulsions of Government procedures, the committee urged that a Corporation should be set up under the Indian Companies Act, and all the present and future assets of the four international airports placed under its ownership and management, except for the functions of aeronautical communication, navigation, and air traffic services as well as weather forecasting services, which should continue to be- under the control of the Departments of Civil Aviation and Meteorology respectively. In the opinion of the Committee, only a commercially oriented organisation with sufficient flexibility and autonomy in financial matters, and freed from the requirements of regular Government procedures, would be able to provide the drive and speed so necessary for the quick development and business-like management of these airports. A sub-committee appointed by the International Airports Committee in this regard had come to the definite conclusion that the creation of an autonomous Airport Authority would not cause any additional burden or liability on the Central Government budget and would in tact have definite functional advantage. 4. The proposed Airports Authority will be engaged in creating, maintaining and providing services and facilities, rather than in the production of or trade in goods. For the purposes of co-ordination with various Government agencies, a Joint Stock Company under the Indian Companies Act may be ill-suited. The decision of Government on the recommendations of Administrative terms Commissions that the statutory corporation form is preferable for enterprises providing public utilities, as is the case here. It is accordingly proposed to constitute a statutory Authority for the development and management of the four international airports of Delhi, Bombay, Calcutta and Madras. Power has also been conferred: on the Central Government to apply the provisions of the Act to any other airport where international air transport services are operated or are intended to be operated. 5. The Bill seeks to achieve the above object. 6. The notes on clauses appended to the Bill explain the more important provisions of the Bill Gaz. of Ind., 9-7-1971, Pt. II, S.2,Ext.,p.412.

An Act to provide for the constitution of an authority for the management of certain aerodromes whereat international air transport services are operated or are intended to be operated and for matters connected therewith. Be it enacted by Parliament in the Twenty-second Year of the Republic of India as follows:—

SECTION 01: SHORT TITLE, COMMENCEMENT AND APPLICATION

(1) This Act may be called THE INTERNATIONAL AIRPORTS AUTHORITY ACT, 1971.

(2) It shall come into force on such date1as the Central Government may by notification in the Official Gazette, appoint.

(3) It applies, in the first instance, to the aerodromes of Bombay (Santa Cruz), Calcutta (Dum Dum), Delhi (Palam) and Madras (Meenarobakkarn) and the Central Government may, by notification in the Official Gazette, apply the provisions of this Act to any other aerodrome whereat international air transport services are operated or are intended to be operated and with effect from such date as may be specified in the notification.

SECTION 02: DEFINITIONS

In this Act, unless the context otherwise requires—

(a) "airport" means an aerodrome as defined in clause (2) of section 2 of the Aircraft Act, 1934 and to which this Act applies or is made applicable;

(b) "airstrip" means an area used or intended .to be used for the landing and take-off of aircraft with short take-off and landing characteristics and includes all buildings and structures thereon or appertaining thereto;

(d) "Chairman" means the Chairman of the Authority;

(e) "Heliport" means an area, either at ground level or elevated on a structure, used or intended to. be used for the landing and take-off of helicopters and includes an area for parking helicopters and all buildings and structures thereon or appertaining thereto;

(f) "member" means a member of the Authority and includes the Chairman but for the purposes of sections 4, 5, 6 and 7 does not include the ex officio member referred to in clause (b) of sub-section (3) of section 3;

(g) "prescribed" means prescribed rules made under this Act; and

(h) "Regulations" means regulations made under this Act.

SECTION 03: CONSTITUTION AND INCORPORATION OF THE AUTHORITY

(1) With effect from the commencement of this Act, the Central Government shall constitute an authority to be called the International Airports Authority of India.

(2) The Authority, shall be a body corporate, by the name aforesaid having perpetual succession and a common seal, with power, subject to the provisions of this Act to acquire, hold and dispose of property both moveable and immovable, and to contract and shall by the said name sue and be sued.

(3) The Authority shall consist of—

(a) a Chairman to be appointed by the Central Government

(b) the Director-General of Civil Aviation, ex officio; and

(4) The Chairman shall be a whole-time member and the other members referred to in clause (c) of sub-section (3) may be appointed as whole-time or part-time members as the Central Government may think fit.

(5) The names of persons appointed as members shall be notified by the Central Government in the Official Gazette.

(6) During the temporary absence of the Chairman, the Central Government may appoint another member to act as the Chairman.

SECTION 04: DISQUALIFICATION FOR OFFICE OF MEMBER

A person shall be disqualified for being appointed as a member if he—

(a) has been convicted and sentenced to imprisonment for an offence, which, in the opinion of the Central Government, involves moral turpitude; or

(b) is an undischarged insolvent; or

(d) has been removed or dismissal from the service of the Government or a corporation owned or controlled by the Government; or

(e) has, in the opinion of the Central Government, such financial or other interest in the Authority as is likely to affect prejudicially the discharge by him of his functions as a member.

SECTION 05: TERM OF OFFICE AND CONDITIONS OF SERVICE OF MEMBERS

(1) Subject to the provisions of section 6-, every member shall hold office for a period of three years from the date on which he assumes office: Provided that Central Government may—

(a) terminate the appointment of any whole-time member, who is not a servant of the Government, after giving Man notice for a period of not less than three months or in lien thereof on payment of an amount equal to his salary and allowances, if any, for a period at three months;

(b) terminate the appointment of any part-time member who is not a servant of the Government after giving him notice for such period as may be prescribed; and

(2) The other conditions of service of the members shall be such as may be prescribed.

(3) Any member may resign his office by giving notice in writing for such period as may be prescribed -to the Central Government and, on such resignation being notified in the Official Gazette by that Government, such member shall be deemed to have vacated his office.

(4) A casual vacancy caused by the resignation of a member under sub- section (3) or otherwise may be filled by fresh appointment and the person so appointed shall hold office for the remaining period for which the member in whose place he is appointed would have held office.

SECTION 06: VACATION OF OFFICE OF MEMBER

The Central Government shall re- move a member if he—

(a) becomes subject to any of the disqualifications mentioned in section 4-: Provided that no member shall be removed on the ground that he has become subject to the disqualification mentioned in clause (e) of that section, unless he has been given a reasonable opportunity of being heard in the matter; or",

(b) refuses to act or becomes incapable of acting; or

(c) is, without obtaining leave of absence from the Authority, absent from three consecutive meetings of the Authority; or

(d) in the opinion of the Central Government, has said abused his position as to render his continuance in. office detrimental to the public interest : Provided that no member shall be removed under this clause unless he has been given a reasonable opportunity of being heard in the matter.

SECTION 07: ELIGIBILITY OF MEMBER FOR REAPOINTMENT

Any person ceasing to be a member shall unless disqualified under section 4-, be eligible for reappointment as such.

SECTION 08: MEETINGS

(1) The Authority shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at meetings) as may be provided by regulations.

(2) The Chairman, or, if for any reason he is unable to attend any meeting, any other member chosen by the members present at the meeting, shall preside at the meeting.

(3) All questions which come up before any meeting of the Authority shall be decided by a majority of the votes of the members present and voting, and, in the event of an equality of votes, the Chairman, or in his absence, the person presiding, shall have and exercise a second or casting vote.

SECTION 09: VACANCY IN THE AUTHORITY NOT TO INVALIDATE PROCEEDINGS

No act or proceeding of the Authority shall be deemed to be invalid by reason merely of any vacancy in, or any defect in the constitution of, the Authority.

SECTION 10: APPOINTMENT OF OFFICERS AND OTHER EMPLOYEES OF THE AUTHORITY

(1) For the purpose of enabling it efficiently to discharge its functions under this Act, the Authority .shall, subject to the provisions of section 12-and to such rules as may be prescribed in this behalf, appoint (whether on deputation or otherwise) such number of officers and other employees as it may consider necessary: Provided that the appointment of such category of officers as may be specified after consultation with the Chairman in such rules, shall be subject to the approval of the Central Government.

(2) Subject to the provisions of section 12-, every officer or other employee appointed by the Authority shall be subject to such conditions of service and shall be entitled to such remuneration as may be determined by regulations.

SECTION 11: AUTHORITY TO ACT ON BUSINESS PRINCIPLES

In the discharge of its functions under this Act, the Authority, shall act, so far as may be, on business principles.

SECTION 12: TRANSFER OF ASSETS AND LIABILITIES OF CENTRAL GOVERNMENT TO THE AUTHORITY

(1) Save as otherwise provided in sub-section as from such date2as the Central Government may appoint by notification in the Official Gazette in relation to any airport,—

(a) all properties and other assets vested in the Central Government for the purposes of the airport and administered by the Director-General of Civil Aviation immediately before such day shall vest in the Authority;

(b) all debts, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done by, with or for the Central Government immediately before Such day for or in connection with, purposes of the airport shall be deemed to have been incurred, entered into and engaged to be done by, with, or for the Authority;

(c) all non-recurring expenditure incurred by the Central Government for or in connection with the purposes of the airport up to such day and declared to be capital expenditure by the Central Government shall, subject to such terms and conditions as may be determined by the Central Government, be treated as the capital provided by the Central Government to the Authority;

(d) all sums of money due to the Central Government in relation to the airport immediately before such day shall be deemed to be due to the Authority;

(e) all suits and other legal proceedings instituted or which could have been instituted by or against the Central Government immediately before such day for any matter in relation to the airport may be continued or instituted by or against the Authority;

(f) every employee holding any office under the Central Government immediately before such day solely or mainly for or in connection with such affairs of the airport as are relevant to the functions of the Authority under this Act shall be treated as on deputation with the Authority but shall hold his office in the Authority by the same tenure and upon the same terms and conditions of service as respects remuneration, leave, provident fund, retirement or other terminal benefits as he would have held such office, if the Authority had not been constituted and shall continue to do so Until the Central Government, either on its own motion or at the request of the Authority, recalls such employee to its service or until the Authority, with the concurrence of the Central Government duly absorbs such employee in its regular service, whichever is earlier: Provided that during the period of deputation of any such employee with the Authority, the Authority shall pay to the Central Government, in respect of every such. employee, such contribution towards his leave salary, pension and gratuity as the Central Government may, by order, determine: Provided further that any such employee, who has, in respect of the proposal of the Authority to absorb him in its regular service, intimated within such time as may be specified in this behalf by the Authority his intention of not becoming a regular employee of the Authority, shall not be absorbed by the Authority in its regular service.

(2) As from the date determined by the Central Government under the proviso to sub-s. (2) of section 16-,—

(a) the equipment and appliances relating, to air navigation services and the buildings used exclusively for such services immediately before such day shall vest in the Authority;

(b) all debts, obligations and liabilities-incurred, all contracts entered into and all matters and things engaged -to be done by, with, or for the Central Government immediately before such day for or in connection with air navigation services shall be deemed to have been incurred, entered into and engaged to be done by, with, or for the Authority;

with air navigation services immediately before such day shall be deemed to be due to the Authority;

(d) all suits and other legal proceedings instituted or which could have been instituted by or against the Central Government immediately before such day for any matter in connection with air navigation services may be continued or instituted by or against the Authority;

(e) every employee holding any office under the Central Government immediately before such day solely or mainly for or in connection with air navigation services shall be treated as on deputation with the Authority but shall hold his office in the Authority by the same tenure and upon the same terms and conditions of service as respects remuneration, leave, provident fund, retirement or other terminal benefits as he would have held Such office, if the Authority had riot been constituted and shall continue to do so until the Central Government, either on its own motion or at the request of the Authority, recalls such employee to its service or until the Authority, with the concurrence of the Central Government, duly absorbs such employee in its regular service, whichever is earlier: Provided that during the period of deputation of any such employee with the Authority, the Authority shall pay to the Central Government, in respect of every such employee, such contribution towards his leave salary, pension and gratuity as the Central Government may, by order, determine: Provided further that any such employee, who has, in respect of the proposal of the Authority to absorb him in its regular service, intimated within such time as may be specified in

this behalf by the Authority his intention of not becoming a regular employee of the Authority, shall not be absorbed by the Authority in its regular service.

(3) If any dispute or doubt arises as to which of the properties, rights or liabilities of the Central Government have been transferred to the Authority or as to which of the employees serving under the Central Government are to be treated as on deputation with the Authority, under this section, such dispute or doubt shall be decided by the Central Government in consultation with the Authority and the decision of the Central Government thereon shall be final.

(4) Notwithstanding anything contained in the Industrial Disputes Act, 1947 or in any other law for the time being in force, the absorption of any employee by the Authority in its regular service under this section shall not entitle such employee to any compensation under that Act or other law and no such claim shall be entertained by any court, tribunal or other authority.

(5) In this section and in section 16-, the expression "air navigation services", in relation to any airport, means air traffic services (including aeronautical and flight information services), aeronautical communication and navigational aids and meteorological services at such airport.

SECTION 13: COMPULSORY ACQUISITION OF LAND FOR THE AUTHORITY

Any land required by the Authority for discharging its functions under this Act shall be deemed to be needed for a public purpose and such land may be acquired for the Authority under the provisions of the Land Acquisition Act, 1894 or of any other corresponding law for the time being in force.

SECTION 14: CONTRACTS HY THE AUTHORITY

Subject to the provisions of section 15-, the Authority shall be competent to enter onto and perform any contract necessary for the discharge of its functions under this Act.

SECTION 15: MODE OF EXECUTING CONTRACTS ON BEHALF OF THE AUTHORITY

(1) Every contract shall, on behalf of the Authority, be made by the Chairman or such other member or such officer of the Authority as may be generally or specially empowered in this behalf by the Authority and such contracts or class of contracts as may be specified in the regulations shall be sealed with the common seal of the Authority: Provided that no contract exceeding such value or amount as the Central Government may, from time to time, by order, fix in this behalf shall be made unless it has been previously approved by the Authority: Provided further that no contract for the acquisition or sale of immovable property or for the lease of any such property for a term exceeding thirty years and no other contract exceeding such value or amount as the Central Government may, from time to time, by order, fix in this behalf shall bemade unless it has been previously approved by the Central Government.

(2), Subject to the provisions of sub-section (1), the form and manner in which any contract shall be made under this Act shall be such as may be prescribed by regulations.

(3) No contract which is not in accordance with the provisions of this Act and the regulations shall be binding on the Authority.

SECTION 16: FUNCTIONS OF THE AUTHORITY

(1) Subject to the rules, if any, made by the Central Government in this behalf, it shall be the function of the Authority to manage the airports efficiently.

(2) It shall be the duty of the Authority to provide at the airports such services and facilities as are necessary or desirable for the efficient operation of air transport services thereat: Provided that the function of providing air navigation services at the airports shall continue to be discharged by the Central Government until such date as that Government may, by order, determine.

(3) Without prejudice to the generality of the provisions contained in subsections (1) and (2), the Authority may—

(a) plan, develop, construct and maintain runways, taxiways, aprons and terminal and ancillary buildings at the airports;

(b) construct residential buildings and create townships for its employees;

(d) establish warehouses at the airports for the storage or processing of goods;

(e) arrange for postal, money exchange, insurance and telephone facilities for the use of passengers and other persons at the airports;

(f) make appropriate arrangements for watch and ward at the airports;

(g) regulate and control the plying of vehicles and the entry and exit of passengers and visitors, in the airports with due regard to the protocol functions of the Government of India;

(h) develop and provide consultancy services m India and abroad in relation to planning and development of airports or any facilities thereat;

(i) establish and manage heliports and airstrips;

(j) provide such transport facilities as are, in the opinion of the Authority, necessary to the passengers traveling by air;

(k) form one or more companies under, the Companies Act, 1956 or under any other law relating to companies to further the efficient discharge of the functions imposed on it by this Act; and

(l) take all such steps as may be necessary or convenient for, or may be incidental to, the exercise of any power or the discharge of any function conferred or imposed on it by this Act.

(4) In the discharge of its functions under this section, the Authority shall have due regard to the development, of air transport service and to the efficiency, economy and safety of such service.

(5) Nothing contained in this section shall be construed as—

(a) imposing an obligation on the Authority to discharge any function or duty under this section with respect to any airport in relation to which a notification has not been issued under sub-section (1) of section 12-;

(b) authorising the disregard by the Authority of any law for the time being in force; or

(c) authorising any person to institute any proceeding in respect of a duty or liability to which the Authority or its officers or other employees would not otherwise be subject.

SECTION 17: POWER OF THE AUTHORITY TO CHARGE FEES, RENT, ETC

The Authority may—

(i) with the previous approval of the Central Government, charge fees or rent,—

(a) for the landing, housing or parking of aircrafts or for any other service or facility offered in connection with aircraft operations, at any airport, heliport or airstrip.

Explanation.— In this sub-clause "aircraft" does not include an aircraft belonging to the

Indian Defence Services and "aircraft operations" do not include operations of any aircraft belonging to the said Services;

(b) for the amenities given to the passengers and visitors at any airport, heliport or airstrip;

(c) for the use and enjoyment by persons of facilities and other services provided by the Authority at any airport, heliport or airstrip;

(ii) with due regard to the instructions that the Central Government may give to the Authority, from time to time, charge fees or rent from persons who are given by the Authority any facility for carrying on any trade or business at any airport.

SECTION 18: ADDITIONAL CAPITAL AND GRANTS TO THE AUTHORITY BY THE CENTRAL GOVERNMENT

The Central Government may, after due appropriation made by Parliament by law in this behalf,—

(a) provide any capital, over and above the capital provided under clause (c) of sub-sec. (1) of section 12-, that may be required by the Authority for the discharge of its functions under this Act or for any purpose connected therewith on such terms and conditions as that Government may determine;

(b) pay to the Authority, on such terms and conditions as the Central Government may determine, by way of loans or grants such sums of money as that Government may consider necessary for the efficient discharge by the Authority of its functions under this Act

SECTION 19: FUND OF THE AUTHORITY

(1) The Authority shall have its own fund and all receipts of the Authority shall be credited thereto and all payments of the Authority shall be made therefrom.

(2) The Authority shall have power, subject to the provisions of this Act, to spend such sums as it thinks fit to cover all administrative expenses of the Authority and on objects or for purposes authorised by this Act and such sums shall be treated as expenditure out of the fund of the Authority.

(3) All moneys standing at the credit' of the Authority which cannot immediately be applied as provided in sub-section (2) shall be deposited in the State Bank of India or in such scheduled bank or banks and subject to such conditions as may from time to time be specified by the Central Government.

Explanation.— In this sub-section "scheduled bank" has the same meaning as in clause (e) of section 2 of the Reserve Bank of India Act, 1934.

SECTION 20: ALLOCATION OF SURPLUS FUNDS

(1) The Authority may, from time to time, set apart such amounts as it thinks fit as a reserve fund or funds for the purpose of expanding existing facilities or services or creating new facilities or services at any airport or for the purpose of providing against any temporary decrease of revenue or increase of expenditure from transient causes or for purposes of replacement or for meeting expenditure arising from loss or damage from fire, cyclone, air-crash or other accident or for meeting any liability arising out of any act or omission in the discharge of its functions under this Act: Provided that without prejudice to the right of the Authority to establish specific reserves for one or more specific purposes the Authority shall also have the power to establish a general reserve: Provided further that the sums set apart annually in respect of each or any of the specific and general reserves and the aggregate at any time of such sums shall not exceed such limits as may, from time to time, be fixed in that behalf by the Central Government.

(2) After making provision for such reserve fund or funds and for bad and doubtful debts, depreciation in assets and all other matters which are usually provided for by companies registered and incorporated under the Companies Act, 1966, the Authority shall pay the balance of its annual net profits to the Central Government.

SECTION 21: SUBMISSION OF PROGRAMME OF ACTIVITIES AND FINANCIAL ESTIMATES

(1) The Authority shall before the commencement of each financial year, prepare a statement of the programme of its activities during the forthcoming financial year as well as a financial estimate in respect thereof.

(2) The statement prepared under sub-section (1) shall, not less than three months before the commencement of each financial year, be submitted for approval to the Central Government.

(3) The statement and the financial estimates of the Authority may, with the approval of the Central Government, be revised by the Authority,

SECTION 22: INVESTMENT OF FUNDS

The Authority may invest its funds (including any reserve fund) in the securities of the Central Government or in such other manner as may be prescribed.

SECTION 23: BORROWING POWERS OF THE AUTHORITY

(1) The Authority may, with the consent of the Central Government or in accordance with the terms of any general or special authority given to it by the Central Government, borrow money from any source by the issue of bonds, debentures or such other instruments as it may deem fit for discharging all or any of its functions under this Act.

(2) The Central Government may guarantee in such manner as it thinks fit the repayment of the principal and the payment of interest thereon with respect to the loans borrowed by the Authority under sub-section (1).

(3) Subject to such limits as the Central Government may, from time to time, lay down, the Authority may borrow temporarily by way of overdraft or otherwise such amounts as it may require for discharging its functions under this Act.

SECTION 24: ACCOUNTS AND AUDIT

(1) The Authority shall maintain proper accounts and other relevant records and prepare an annual statement of accounts including the profits and loss account and the balance-sheet in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India.

(2) The accounts of the Authority shall be audited annually by the Comptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be payable by the Authority to the Comptroller and Auditor-General of India.

(3) The Comptroller and Auditor-General of India and any person appointed by him in connection-with the audit of the accounts of .the Authority shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General has in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers,

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