Airport Authority of India Act 1994

CHAPTER VI

THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

(55 OF 1994)

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CHAPTER VI


TABLE OF CONTENTS

SECTIONS PAGES

CHAPTER I

PRELIMINARY

1. Short title, commencement and application. . . . . . . 82

2. Definitions . . . . . . . . . . . 82

CHAPTER II

THE AIRPORTS AUTHORITY OF INDIA

3. Constitution and incorporation of the Authority . . . . . . 83

4. Disqualification for office of member. . . . . . . . 84

5. Term of office and conditions of service of members. . . . . . 84

6. Vacation of office of member. . . . . . . . . 84

7. Eligibility of member for re-appointment . . . . . . . 85

8. Meetings . . . . . . . . . . . 85

9. Vacancies, etc., not to invalidate proceedings of the Authority . . . . 85

10. Appointment of officers and other employees of the Authority . . . . 85

11. Authority to act on business principles . . . . . . . 85

CHAPTER III

FUNCTIONS OF THE AUTHORITY

12. Functions of the Authority . . . . . . . . . 86

CHAPTER IV

PROPERTY AND CONTRACT

13. Undertakings of the International Airports Authority and theNational Airports Authority to vest in the Authority . . . . . . 87

14. General effect of vesting of undertaking in the Authority . . . . . 87

15. Licences, etc., to be deemed to have been granted to the Authority. . . . 88

16. Tax exemption or benefit to continue to have effect. . . . . . 88

17. Guarantee to be operative . . . . . . . . . 88

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THE AIRPORTS AUTHORITY OF INDIA ACT, 1994 Chap. VI

18. Provisions in respect of officers and other employees of theInternational Airports Authority and the National Airports Authority. . . . 88

19. Compulsory acquisition of land for the Authority . . . . . . 90

20. Contracts by the Authority . . . . . . . . . 90

21. Mode of executing contracts on behalf of the Authority . . . . . 90

CHAPTER V

FINANCE, ACCOUNTS AND AUDIT

22. Power of the Authority to charge fees, rent, etc. . . . . . . 90

23. Additional capital and grant to the Authority by the Central Government . . . 91

24. Fund of the Authority and its investment . . . . . . . 91

25. Allocation of surplus funds . . . . . . . . . 91

26. Submission of programme of activities and financial estimates . . . . 92

27. Borrowing powers of the Authority . . . . . . . . 92

28. Accounts and audit . . . . . . . . . . 92

CHAPTER VI

MISCELLANEOUS

29. Submission of annual report. . . . . . . . . 93

30. Delegation . . . . . . . . . . . 93

31. Authentication of orders and other instruments of the Authority . . . . 93

32. Officers and employees of the Authority to be public servants . . . . 93

33. Protection of action taken in good faith . . . . . . . 93

34. Custody and disposal of lost property. . . . . . . . 93

35. Provisions relating to income-tax . . . . . . . . 93

36. Power of the Authority to undertake certain works. . . . . . 93

37. Power to issue directions . . . . . . . . . 94

38. Power of the Central Government to temporarily divest theAuthority of the management of any airport. . . . . . . 94

39. Power of the Central Government to supersede the Authority. . . . . 95

40. Power of the Central Government to issue directions. . . . . . 96

41. Power to make rules. . . . . . . . . . 96

42. Power to make regulations . . . . . . . . . 97

43. Rules and regulations to be laid before parliament. . . . . . 98

44. Power to remove difficulties. . . . . . . . . 98

45. Amendment of Act 22 of 1934. . . . . . . . . 99

46. Repeal and Saving . . . . . . . . . . 99

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An Act to provide for the constitution ofthe Airports Authority of India and for thetransfer and vesting of the undertakings of theInternational Airports Authority of India andthe National Airports Authority to and in theAirports Authority of India so constituted forthe better administration and cohesivemanagement of airports and civil enclaveswhereat air transport services are operated orare intended to be operated and of allaeronautical communication stations and formatters connected therewith or incidentalthereto.

Be it enacted by parliament in the Forty-fifth Year of the Republic of India as follows:-

CHAPTER I

PRELIMINARY

1. Short title, commencement andapplication—(1) This Act may be called theAirports Authority of India Act, 1994.

(2) It shall come into force on such dateas the Central Government may, by notificationin the official Gazette, appoint.

(3) It applies to—

(a) all airports whereat air transport servicesare operated or are intended to beoperated, other than airports and airfieldsbelonging to, or subject to the controlof, any armed force of the Union;

(b) all civil enclaves;

(c) all aeronautical communication stations;and

(d) all training stations, establishments andworkshops relating to air transportservices.

2. Definitions— In this Act, unless thecontext otherwise requires,—

(a) “aeronautical communication station”means a station in the aeronauticalcommunication service which includesaeronautical practising service,aeronautical fixed service, aeronauticalmobile service and aeronautical radiocommunication service;

(b) “airport” means a landing and taking offarea for aircrafts, usually with runwaysand aircraft maintenance and passengerfacilities and includes aerodrome asdefined in clause (2) of section 2 of theAircraft Act, 1934;

(c) “airstrip” means an area used or intendedto be used for the landing and take-off ofaircrafts with short take-off and landingcharacteristics and includes all buildingsand structures thereon or appertainingthereto;

(d) “air traffic service” includes fightinformation service, alerting service, airtraffic advisory service, air traffic controlservice, area control service, approachcontrol service and airport controlservice;

CHAPTER VI


(55 of 1994)

(September 12, 1994)

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Chap. VI THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

(e) “air transport service” means any service,for any kind of remuneration, whatsoever,for the transport by air of persons, mailor any other thing, animate or inanimate,whether such service relates to a singleflight or series of flights;

(f) “appointed day” means such date as theCentral Government may, by notificationin the official Gazette, appoint for thepurposes of section 3;

(g) “Authority” means the Airports Authorityof India constituted under section 3;

(h) “Chairperson” means the chairperson ofthe Authority appointed under clause (a)of sub-section (3) of section 3;

(i) “civil enclave” means the area, if any,allotted at an airport belonging to anyarmed force of the union, for use bypersons availing of any air transportservices from such airport or for thehandling of baggage or cargo by suchservice, and includes land comprising ofany building and structure on such area;

(j) “heliport” means an area, either at groundlevel or elevated on a structure, used orintended to be used for the landing andtake-off of helicopters and includes anyarea for parking helicopters and allbuildings and structures thereon orappertaining thereto;

(k) “International Airports Authority” meansthe International Airports Authority ofIndia constituted under section 3 of theInternational Airports Authority Act,1971;

(l) “member” means a member of theAuthority and includes the chairperson,but does not include, for the purposes ofsections 4, 5, 6, and 7, an ex officio

member referred to in clause (b) of sub-section (3) of section 3;

(m) “National Airports Authority” means theNational Airports Authority constitutedunder section 3 of the National AirportsAuthority Act, 1985;

(n) “prescribed” means prescribed by rulesmade under this Act;

(o) “regulations” means regulations madeunder this Act.

CHAPTER II

THE AIRPORTS AUTHORITY OFINDIA

3. Constitution and incorporation of theAuthority —(1) With effect from the appointedday, the Central Government shall, bynotification in the official Gazette, constitutean authority to be called the Airports Authorityof India.

(2) The Authority shall be a body corporateby the name aforesaid having perpetualsuccession and a common seal, with power,subject to the provisions of this Act, to acquire,hold and dispose of property both movable andimmovable, and to contract and shall by the saidname sue and be sued.

(3) The Authority shall consist of —

(a) a chairperson to be appointed by thecentral government;

(b) the Director General of Civil aviation,or an officer not below the rand of theDeputy Director General of CivilAviation, to be appointed by the CentralGovernment, ex officio;

(c) not less than eight and not more thanfourteen members to be appointed bythe Central Government.

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(4) The Chairperson shall be a whole-timemember and other members referred to in clause(c) of sub-section (3) may be appointed aswhole-time or part-time members as the CentralGovernment may think fit.

(5) The Chairperson and the membersreferred to in clause (c) of subsection (3) shallbe chosen from among persons who have specialknowledge and experience in air transport orany other transport services industry,commercial or financial matters oradministration and from among persons whoare capable of representing organisations ofworkers and consumers.

4. Disqualification for office ofmember— A person shall be disqualified forbeing appointed as a member if he—

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

(b) is an undischarged insolvent; or

(c) is of unsound mind and stands so declaredby a competent court; or

(d) has been removed or dismissed from theservice of the Government or a bodycorporate owned or controlled by theGovernment; or

(e) has in the opinion of the centralGovernment such financial or otherinterest in the Authority as is likely toaffect prejudicially the discharge by himof his functions as a member.

5. Term of office and conditions ofservice of members— (1) Subject to theprovisions of section 6,—

(i) every whole-time member (other thanthe ex officio member) shall hold officefor a period of five years from the dateon which he assumes office or till he

attains the age of sixty years, whicheveris earlier , and

(ii) every part-time member (other than theex officio member) shall hold office fora period of three years from the date onwhich he assumes office:

Provided that the Central Governmentmay—

(a) terminate the appointment of anywhole-time member, who is not aservant of the Government, aftergiving him notice for a period ofnot less than three months or, inlieu thereof, on payment of anamount equal to his salary andallowances, if any, for a period ofthree months;

(b) terminate the appointment of anypart-time member who is not aservant of the Government aftergiving him notice for such period asmay be prescribed; and

(c) terminate at any time theappointment of any member who isa servant of the Government.

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

(3) Any member may resign his office bygiving notice in writing for such period asmay be prescribed, to the Central Governmentand, on such resignation being notified in theofficial Gazette by that Government, suchmember shall be deemed to have vacated hisoffice.

6. Vacation of office of member— TheCentral Government shall remove a memberif he —

(a) becomes subject to any of thedisqualifications mentioned in section4:

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Provided that no member shall be removedon the ground that he has become subject tothe disqualification mentioned in clause (e)of that section, unless he has been given areasonable opportunity of being heard in thematter; or

(b) refuses to act or becomes incapable ofacting; or

(c) is ,without obtaining leave of absencefrom the Authority, absent from threeconsecutive meetings of the Authority;or

(d) in the opinion of the CentralGovernment, has so abused his positionas to render his continuance in officedetrimental to the public interest:

Provided that no member shall be removedunder this clause unless he has been given areasonable opportunity of being heard in thematter.

7. Eligibility of member for re-appointment — Any person ceasing to be amember shall, unless disqualified under section4, be eligible for re-appointment.

8. Meetings— (1) The Authority shallmeet at such times and places, and shall observesuch rules of procedure in regard to thetransaction of the business at its meetings(including the quorum at such meetings) asmay be provided by regulations.

(2) The Chairperson, or, if for any reasonhe is unable to attend any meeting of theauthority, any other member chosen by themembers present at the meeting shall presideat the meeting.

(3) All questions which come up beforeany meeting of the Authority shall be decidedby a majority of the votes of the members

present and voting, and, in the event of anequality of votes, the Chairperson, or in hisabsence, the person presiding, shall have andexercise a second or casting vote.

9. Vacancies, etc., not to invalidateproceedings of the Authority— No act orproceeding of the Authority shall be invalidmerely by reason of—

(a) any vacancy in, or any defect in theconstitution of the Authority; or

(b) any defect in the appointment of a personacting as a member of the Authority; or

(c) any irregularity in the procedure of theAuthority not affecting the merits of thecase.

10.Appointment of officers and otheremployees of the Authority— (1) For thepurpose of enabling it efficiently to dischargeits functions under this Act, the Authorityshall, subject to the provisions of section 18and to such rules as may be made in thisbehalf, appoint (whether on deputation orotherwise) such number of officers and otheremployees as it may consider necessary:

Provided that the appointment of suchcategory of officers, as may be specified afterconsultation with the Chairperson in such rules,shall be subject to the approval of the CentralGovernment.

(2) Subject to the provisions of section 18,every officer or other employee appointed bythe Authority shall be subject to such conditionsof service and shall be entitled to suchremuneration as may be determined byregulations.

11.Authority to act on businessprinciples— In the discharge of its functionsunder this Act, the Authority shall act, so far asmay be, on business principles.

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CHAPTER III

FUNCTIONS OF THE AUTHORITY

12.Functions of the Authority— (1)Subject to the rules, if any, made by the CentralGovernment in this behalf, it shall be thefunction of the Authority to manage the airports,the civil enclaves and the aeronauticalcommunication stations efficiently.

(2) It shall be the duty of the Authority toprovide air traffic service and air transportservice at any airport and civil enclaves.

(3) Without prejudice to the generality ofthe provisions contained in sub-sections (1)and (2), the Authority may—

(a) plan, develop, construct and maintainrunways, taxiways, aprons and terminalsand ancillary buildings at the airportsand civil enclaves;

(b) plan, procure, install and maintainnavigational aids, communicationequipment, beacons and ground aids atthe airports and at such locations as maybe considered necessary for safenavigation and operation of aircrafts;

(c) provide air safety services and searchand rescue facilities in co-ordinationwith other agencies;

(d) establish schools or institutions orcentres for the training of its officersand employees in regard to any matterconnected with the purposes of this Act;

(e) construct residential buildings for itsemployees;

(f) establish and maintain hotels, restaurantsand restrooms at or near the airports;

(g) establish warehouses and cargocomplexes at the airports for the storageor processing of goods;

(h) arrange for postal, money exchange,insurance and telephone facilities forthe use of passengers and other personsat the airports and civil enclaves;

(i) make appropriate arrangements for watchand ward at the airports and civil enclaves;

(j) regulate and control the plying ofvehicles, and the entry and exit ofpassengers and visitors, in the airportsand civil enclaves with due regard to thesecurity and protocol functions of theGovernment of India;

(k) develop and provide consultancy,construction or management services,and undertake operations in India andabroad in relation to airports, air-navigation services, ground aids andsafety services or any facilities thereat;

(l) establish and manage heliports andairstrips;

(m) provide such transport facility as are, inthe opinion of the Authority, necessaryto the passengers travelling by air;

(n) form one or more companies under theCompanies Act, 1956 or under any otherlaw relating to companies to further theefficient discharge of the functionsimposed on it by this Act;

(o) take all such steps as may be necessaryor convenient for, or may be incidentalto, the exercise of any power or thedischarge of any function conferred orimposed on it by this Act;

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(p) perform any other function considerednecessary or desirable by the CentralGovernment for ensuring the safe andefficient operation of aircraft to, fromand across the air space of India;

(q) establish training institutes andworkshops;

(r) any other activity at the airports and thecivil enclaves in the best commercialinterests of the Authority including cargohandling, setting up of joint ventures forthe discharge of any function assignedto the Authority.

(4) In the discharge of its functions underthis section, the Authority shall have due regardto the development of air transport service andto the efficiency, economy and safety of suchservice.

(5) Nothing contained in this section shallbe construed as—

(a) authorising the disregard by the Authorityof any law for the time being in force; or

(b) authorising any person to institute anyproceeding in respect of duty or liabilityto which the Authority or its officers orother employees would not otherwisebe subject.

CHAPTER IV

PROPERTY AND CONTRACT

13.Undertakings of the InternationalAirports Authority and the NationalAirports Authority to vest in the Authority —(1) On and from the appointed day, there shallbe transferred to, and vest in, the Authorityconstituted under section 3, the undertakingsof the International Airports Authority and theNational Airports Authority.

(2) The undertaking of the InternationalAirports Authority or the National Airports

Authority which is transferred to and whichvests in, the Authority under sub-section (1)shall be deemed to include all assets, rights,powers, authorities and privileges and allproperty movable and immovable, real orpersonal, corporeal or incoporeal, present orcontingent, of whatever nature and wheresoeversituate, including lands, buildings, machinery,equipments, works, workshops, cash balances,capital reserves, reserve funds, investments,tenancies, leases and book debts and all otherrights and interests arising out of such propertyas were immediately before the appointed dayin the ownership, possession or power of theInternational Airports Authority, or as the casemay be, the National Airports Authority, inrelation to its undertaking, whether within oroutside India, all books of account anddocuments relating thereto and shall also bedeemed to include all borrowings, liabilitiesand obligations of whatever kind then subsistingof the International Airports Authority, or asthe case may be, the National Airports Authorityin relation to its undertaking.

14.General effect of vesting ofundertaking in the Authority —(1) Allcontracts, agreements and workingarrangements subsisting immediately beforethe appointed day and affecting the InternationalAirports Authority, or as the case may be, theNational Airports Authority shall, in so far asthey relate to the International AirportsAuthority, or as the case may be, the NationalAirports Authority, cease to have effect or beenforceable against the International AirportsAuthority, or as the case may be, the NationalAirports Authority and shall be of as full forceand effect against or in favour of the Authorityin which the undertakings have vested by virtueof this Act and enforceable as fully andeffectually as if, instead of the InternationalAirports Authority, or as the case may be, the

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National Airports Authority, the Authority hadbeen named therein or had been a party thereto.

(2) Any proceeding, suit or cause of actionpending or existing immediately before theappointed day by or against the InternationalAirports Authority or the National AirportsAuthority in relation to its undertakings may, asfrom that day, be continued and enforced by oragainst the Authority in which it has vested byvirtue of this Act, as might have been enforcedby or against the International Airports Authorityor the National Airports Authority if this Acthad not been passed, and shall cease to beenforceable by or against the InternationalAirports Authority, or as the case may be, theNational Airports Authority.

15.Licences, etc., to be deemed to havebeen granted to the Authority— With effectfrom the appointed day, all licences, permits,quotas and exemptions, granted to theInternational Airports Authority or the NationalAirports Authority in connection with the affairsand business of the International AirportsAuthority, or as the case may be, the NationalAirports Authority, under any law for the timebeing in force, shall be deemed to have beengranted to the Authority in which theundertakings of the International AirportsAuthority and the National Airports Authorityhave vested by virtue of this Act.

16.Tax exemption or benefit to continueto have effect—(1) Where any exemption from,or any assessment with respect to, any tax hasbeen granted or made or any benefit by way ofset off or carry forward, as the case may be, ofany unabsorbed depreciation or investmentallowance or other allowance or loss has beenextended or is available to the InternationalAirports Authority or the National AirportsAuthority, under the Income-tax Act, 1961,such exemption, assessment or benefit shallcontinue to have effect in relation to theAuthority in which the undertakings of the

International Airports Authority and the NationalAirports Authority have vested by virtue of thisAct.

(2) Where any payment made by theInternational Airports Authority or the NationalAirports Authority is exempt from deductionof the tax at source under any provision of theIncome-tax Act, 1961, the exemption from taxwill continue to be available as if the provisionsof the said Act made applicable to theInternational Airports Authority or the NationalAirports Authority were operative in relation tothe Authority in which the undertakings of theInternational Airports Authority and the NationalAirports Authority have vested by virtue of thisAct.

(3) The transfer and vesting of theundertakings or any part thereof in terms ofsection 13 shall not be construed as a transferwithin the meaning of the Income-tax Act, 1961for the purposes of capital gains.

17.Guarantee to be operative— Anyguarantee given for or in favour of theInternational Airports Authority or the NationalAirports Authority with respect to any loan orlease finance shall continue to be operative inrelation to the Authority in which theundertakings of the International AirportsAuthority and the National Airports Authorityhave vested by virtue of this Act.

18.Provisions in respect of officers andother employees of the InternationalAirports Authority and the National AirportsAuthority — (1) (a) Every officer or otheremployee of the International Airports Authorityserving in its employment immediately beforethe appointed day shall, in so far as such officeror other employee is employed in connectionwith the undertaking which has vested in theAuthority by virtue of this Act, becomes, asfrom the appointed day, an officer or, as the casemay be, other employee of the InternationalAirports Division of the Authority.

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(b) Every officer or other employee of theNational Airports Authority serving in itsemployment immediately before the appointedday shall, in so far as such officer or otheremployee is employed in connection with theundertaking which has vested in the Authorityby virtue of this Act, becomes, as from theappointed day, an officer or, as the case may be,other employee of the National AirportsDivision of the Authority.

(2) Every officer or other employee of theInternational Airports Authority or the NationalAirports Authority who becomes an officer or,as the case may be, other employee of theAuthority, as referred to in sub-section (1),shall hold his office or service therein by thesame tenure, at the same remuneration, uponthe same terms and conditions, with the sameobligations and with the same rights andprivileges as to leave, passage, insurance,superannuation scheme, provident fund, otherfunds, retirement, pension, gratuity and otherbenefits as he would have held under theInternational Airports Authority or, as the casemay be, the National Airports Authority if itsundertaking had not vested in the Authority andshall continue to do so as an officer or otheremployee, as the case may be, of the Authorityor until the expiry of a period of one year fromthe appointed day if such officer or otheremployee opts not to be the officer or otheremployee of the Authority within such period:

Provided that if the Authority thinks itexpedient to extend the period so fixed, it mayextend the same up to maximum period of oneyear.

(3) Where an officer or other employee ofthe International Airports Authority or theNational Airports Authority opts under sub-section (2) not to be in the employment orservice of the Authority in which theundertakings of the International Airports

Authority and the National Airports Authorityhave vested, such officer or other employeeshall be deemed to have resigned from therespective cadre.

(4) Notwithstanding anything contained inthe Industrial Disputes Act, 1947 or in anyother law for the time being in force, the transferof the services of any officer or other employeeof the International Airports Authority or theNational Airports Authority to the Authorityshall not entitle such officer or other employeeto any compensation under this Act or underany other law for the time being in force and nosuch claim shall be entertained by any court,tribunal or other authority.

(5) The officers and other employees whohave retired before the appointed day from theservice of the International Airports Authorityor the National Airports Authority and areentitled to any benefits, rights or privilegesshall be entitled to receive the same benefits,rights or privileges from the Authority in whichthe undertaking of the International AirportsAuthority and the National Airports Authorityhave vested.

(6) The trusts of the Provident Fund andGroup Insurance and Superannuation Schemeof the International Airports Authority or theNational Airports Authority and any other bodiescreated for the welfare of officers or employeeswould continue to discharge their functions inthe Authority as was being done hitherto in theInternational Airports Authority or the NationalAirports Authority and tax exemption grantedto provident Fund or Group Insurance andSuperannuation Scheme would continue to beapplied to the Authority.

(7) After the expiry of the period of oneyear, or the extended period, as referred to insub-section (2), all the officers and otheremployees transferred and appointed to the

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Authority, other than those opting not to be theofficers or employees of the Authority withinsuch period, shall be governed by the rules andregulations made by the Authority in respect ofthe service conditions of the officers and otheremployees of the said Authority.

19.Compulsory acquisition of land forthe Authority — Any land required by theAuthority for the discharge of its functionsunder this Act shall be deemed to be needed fora public purpose and such land may be acquiredfor the Authority under the provisions of theLand Acquisition Act, 1894 or of any othercorresponding law for the time being in force.

20.Contracts by the Authority— Subjectto the provisions of section 21, the Authorityshall be competent to enter into and performany contract necessary for the discharge of itsfunctions under this Act.

21.Mode of executing contracts on behalfof the Authority — (1) Every contract shall, onbehalf of the Authority, be made by thechairperson or such other member or suchofficer of the Authority as may be generally orspecially empowered in this behalf by theAuthority and such contracts or class ofcontracts as may be specified in the regulationsshall be sealed with the common seal of theAuthority:

Provided that no contract exceeding suchvalue or amount as the Central Governmentmay, from time to time, by order, fix in thisbehalf shall be made unless it has beenpreviously approved by the Authority:

Provided further that no contract for theacquisition or sale of immovable property orfor the lease of any such property for a termexceeding thirty years and no other contractexceeding such value or amount as the CentralGovernment may, from time to time, by order,fix in this behalf shall be made unless it has

been previously approved by the CentralGovernment.

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

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

CHAPTER V

FINANCE, ACCOUNTS AND AUDIT

22. Power of Authority to charge fees,rent, etc.— The Authority may —

(i) With the previous approval of the CentralGovernment charge fees or rent—

(a) for the landing, housing or parkingof aircraft or for any other serviceor facility offered in connectionwith aircraft operations at anyairport, heliport or airstrip;

Explanation — In this sub-clause“aircraft” does not include anaircraft belonging to any armedforce of the Union and “aircraftoperations” does not includeoperations of any aircraft belongingto the said force;

(b) for providing air traffic services,ground safety services, aeronauticalcommunications and navigationalaids and meteorological services atany airports and at any aero-nauticalcommunication station;

(c) for the amenities given to thepassengers and visitors at anyairport, civil enclave, heliport orairstrip;

(d) for the use and employment bypersons of facilities and other

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services provided by the Authorityat any airport, civil enclave, heliportor airstrip;

(ii) with due regard to the instructions thatthe Central Government may give to theAuthority, from time to time, chargefees or rent from persons who are givenby the Authority any facility for carryingon any trade or business at any airport,heliport or airstrip.

23.Additional capital and grant to theAuthority by the Central Government— TheCentral Government may, after dueappropriation made by parliament by law in thisbehalf,—

(a) provide any capital that may be requiredby the Authority for the discharge of itsfunctions under this Act or for anypurpose connected therewith on suchterms and conditions as that Governmentmay determine;

(b) pay to the Authority, on such terms andconditions as the Central Governmentmay determine, by way of loans or grantssuch sums of money as that Governmentmay consider necessary for the efficientdischarge by the Authority of itsfunctions under this Act.

24.Fund of the Authority and itsinvestment— (1) The Authority shall haveits own fund and all receipts of the Authorityshall be credited thereto and all payments ofthe Authority shall be made therefrom.

(2) The authority shall have power, subjectto the provisions of this Act, to spend suchsums as it thinks fit to cover all administrativeexpenses of the Authority and on objects or forpurposes authorised by this Act and such sumsshall be treated as expenditure out of the fundof the Authority.

(3) All moneys standing at the credit of theAuthority which cannot immediately be appliedas provided in sub-section (2), shall be —

(a) deposited in the State Bank of India orany such Scheduled bank or banks orother public financial institutions subjectto such conditions as may, from time totime, be specified by the CentralGovernment; and

(b) invested in the securities of the CentralGovernment or in such manner as maybe prescribed.

Explanation— In this sub-section,“Scheduled bank” has the same meaningas in clause (e) of section 2 of the ReserveBank of India Act, 1934.

25.Allocation of surplus funds—(1) TheAuthority may, from time to time, set apartsuch amounts as it thinks fit as a reserve fund orfunds for the purpose of expanding existingfacilities or services or creating new facilitiesor services at any airport, civil enclave, heliportor airstrip or for the purpose of providing againstany temporary decrease of revenue or increaseof expenditure from transient causes or forpurposes of replacement, or for meetingexpenditure arising form loss or damage fromfire, cyclone, air-crash or other accident or formeeting any liability arising out of any act orcommission in the discharge of its functionsunder this Act :

Provided that without prejudice to the rightof the Authority to establish specific reservesfor one or more specific purposes, the Authorityshall also have the power to establish a generalreserve:

Provided further that the sums set apartannually in respect of each or any of the specificand general reserves and the aggregate at any

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time of such sums shall not exceed such limitsas may, from time to time, be fixed in thatbehalf by the Central Government.

(2) After making provision for such reservefund or funds and for bad and doubtful debts,depreciation in assets and all other matterswhich are usually provided for by companiesregistered and incorporated under theCompanies Act, 1956, the Authority shall paythe balance of its annual net profits to theCentral Government.

26.Submission of programme ofactivities and financial estimates— (1) TheAuthority shall, before the commencement ofeach financial year, prepare a statement of theprogramme of its activities during theforthcoming financial year as well as financialestimate in respect thereof.

(2) The statement prepared under sub-section(1) shall, not less than three months before thecommencement of each financial year, besubmitted for approval to the CentralGovernment.

(3) The statement and the financial estimatesof the Authority may, with the approval of theCentral Government, be revised by the Authority.

27.Borrowing powers of the Authority—(1) The Authority may, with the consent of theCentral Government or in accordance with theterms of any general or special authority givento it by the Central Government, borrow moneyform any source by the issue of bonds,debentures or such other instruments as it maydeem fit for discharging all or any of itsfunctions under this Act.

(2) The Central Government may guaranteein such manner as it thinks fit, the repayment ofthe principal and the payment of interest thereonwith respect to the loans borrowed by theAuthority under sub-section (1).

(3) Subject to such limits as the CentralGovernment may, from time to time, lay down,the Authority may borrow temporarily by wayof overdraft or otherwise such amounts as itmay require for discharging its functions underthis Act.

28.Accounts and audit— (1) The Authorityshall maintain proper accounts and other relevantrecords and prepare an annual statement ofaccounts including the profit and loss accountand the balance-sheet in such form as may beprescribed by the Central Government inconsultation with the Comptroller and Auditor-General of India.

(2) The accounts of the Authority shall beaudited annually by the Comptroller and Auditor-General of India and any expenditure incurredby him in connection with such audit shall bepayable by the Authority to the Comptroller andAuditor-General of India.

(3) The Comptroller and Auditor-Generalof India and any person appointed by him inconnection with the audit of the accounts of theAuthority shall have the same rights andprivileges and authority in connection with suchaudit as the comptroller and Auditor-Generalhas in connection with the audit of Governmentaccounts and, in particular, shall have the rightto demand the production of books, accounts,connected vouchers, documents and papers andinspect any of the offices of the Authority.

(4) The accounts of the Authority as certifiedby the Comptroller and Auditor-General ofIndia or any other person appointed by him inthis behalf together with the audit report thereonshall be forwarded annually to the CentralGovernment and that Government shall causethe same to be laid before both Houses ofParliament.

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CHAPTER VI

MISCELLANEOUS

29.Submission of annual report— (1) TheAuthority shall, as soon as may be after the endof each financial year, prepare and submit to theCentral Government in such form as may beprescribed a report giving an account of itsactivities during that financial year and the reportshall also give an account of the activities whichare likely to be undertaken by the Authorityduring the next financial year.

(2) The Central Government shall causesuch report to be laid before both Houses ofParliament as soon as may be after it issubmitted.

30.Delegation— The Authority may, bygeneral or special order in writing, delegate tothe Chairperson or any other member or to anyofficer of the Authority, subject to suchconditions and limitations, if any, as may bespecified in the order, such of its powers andfunctions under this Act, (except the powersunder section 42) as it may deem necessary.

31.Authentication of orders and otherinstruments of the Authority— All ordersand decisions of the Authority shall beauthenticated by the signature of the Chairpersonor any other member authorised by the Authorityin this behalf and all other instruments executedby the Authority shall be authenticated by thesignature of an officer of the Authorityauthorised by it in this behalf.

32.Officers and employees of theAuthority to be public servants—All officersand employees of the Authority shall, whileacting or purporting to act in pursuance of theprovisions of this Act or of any rule or regulationmade thereunder, be deemed to be public servants

within the meaning of section 21 of the IndianPenal Code.

33.Protection of action taken in goodfaith—No suit, prosecution or other legalproceeding shall lie against the Authority orany member or any officer or other employeeof the Authority for anything which is in goodfaith done or intended to be done in pursuanceof this Act or of any rule or regulation madethereunder or for any damage sustained byany aircraft or vehicle in consequence of anydefect in any of the airports, civil enclaves,heliports, airstrips, aeronauticalcommunication stations or other thingsbelonging to or under the control of theAuthority.

34.Custody and disposal of lostproperty—Subject to such regulations as theAuthority may make in this behalf, theAuthority shall provide for securing the safecustody and restoration of any property which,while not in proper custody, is found on anypremises belonging to the Authority or underits overall control or in any aircraft on anysuch premises.

35. Provisions relating to income-tax—For the purposes of the Income-tax Act, 1961or any other enactment for the time being inforce relating to income-tax or any other taxon income, profits or gains, the Authorityshall be deemed to be a company within themeaning of the Income-tax Act, 1961 and shallbe liable to tax accordingly on its income,profits and gains.

36.Power of the Authority to undertakecertain works — The Authority may undertaketo carry out on behalf of any person any worksor services or any class of works or services

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on such terms and conditions as may be agreedupon between the Authority and the personconcerned.

37.Power to issue directions— (1) TheAuthority or any officer specially authorisedby it in this behalf may, from time to time, byorder, issue directions, consistent with theprovisions of the Aircraft Act, 1934, and therules made thereunder, with respect to any ofthe matters specified in clauses (f), (h), (i),(j), (k), (m), (p), (qq) and (r) of sub-section(2) of section 5 of that Act, to any person orpersons engaged in aircraft operations or usingany airport, heliport, airstrip or civil enclave,in any case where the Authority or the officeris satisfied that in the interests of the securityof India or for securing the security of theaircraft it is necessary to do so.

(2) Every direction issued under sub-section(1) shall be complied with by the person orpersons to whom such direction is issued.

(3) If any person wilfully fails to complywith any direction issued under this section,he shall be punishable with imprisonment fora term which may extend to six months orwith fine which may extend to five thousandrupees, or with both.

38.Power of the Central Governmentto temporarily divest the Authority of themanagement of any airport— (1) If, at anytime, the Central Government is of opinionthat in the public interest it is necessary orexpedient so to do, it may, by order, directthe Authority to entrust the administration,management or similar other functions of anyairport, heliport, airstrip, civil enclave,aeronautical communication station, or anyother agency or department of any airport,heliport, airstrip, civil enclave or aeronauticalcommunication station with effect from such

date and to such person as may be specified inthe order and the Authority shall be bound tocomply with such direction :

Provided that before an order is made underthis sub-section the Authority shall be given areasonable opportunity of being heard in thematter.

(2) Where the management of any airport,heliport, airstrip, civil enclave or aeronauticalcommunication station or any other agencyor department thereof is entrusted to any personspecified under sub-section (1) (hereafterreferred to in this section as the authorisedperson), the Authority shall cease to exerciseand discharge all its powers and functionsunder this Act in relation to such airport,heliport, airstrip, civil enclave or aeronauticalcommunication station or any other agencyor department thereof and such powers andfunctions shall be exercised and dischargedby the authorised person in accordance withthe instructions, if any, which the centralGovernment may give to the authorised personfrom time to time:

Provided that no such power or functionas may be specified by the Central Governmentby a general or special order shall be exercisedor discharged by the authorised person exceptwith the previous sanction of the CentralGovernment.

(3) An order made under sub-section (1)shall, unless rescinded, be in operation for aperiod of six months from the date on whichthe management of the airport, heliport, airstrip,civil enclave or aeronautical communicationstation or any other agency or departmentthereof is entrusted to the authorised person:

Provided that the Central Government mayextend such period for a further period orperiods not exceeding eighteen months.

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(4) During the operation of an order madeunder sub-section (1), it shall be competentfor the Central Government to issue, fromtime to time, such directions to the Authorityas are necessary to enable the authorised personto exercise the powers and discharge thefunctions of the Authority under this Act inrelation to the airport, heliport, airstrip, civilenclave or aeronautical communication station,or any other agency or department thereof themanagement of which has been entrusted tohim and in particular to transfer any sum ofmoney from the fund of the Authority to theauthorised person for the management of theairport, heliport, airstrip, civil enclave oraeronautical communication station or any otheragency or department thereof and every suchdirection shall be complied with by theAuthority.

(5) On the cesser of operation of any ordermade under sub-section (1) in relation to anyairport, heliport, airstrip, civil enclave oraeronautical communication station, or anyother agency or department thereof theauthorised person shall cease to exercise andperform the powers and functions of theAuthority under this Act in relation to suchairport, heliport, airstrip, civil enclave oraeronautical communication station or anyother agency or department thereof and theAuthority shall continue to exercise andperform such powers and functions inaccordance with the provisions of this Act.

(6) On the cesser of operation of any ordermade under sub-section (1) in relation to anyairport, heliport, airstrip, civil enclave oraeronautical communication station, or anyother agency or department thereof theauthorised person shall hand over to the Authorityany property (including any sum of money orother asset) remaining with him in connectionwith the management of such airport, heliport,airstrip, civil enclave or aeronauticalcommunication station.

(7) Anything done or any action takenlawfully by the authorised person in relation toany airport, heliport, airstrip, civil enclave oraeronautical communication station or any otheragency or department thereof during the periodof operation of an order made under sub-section(1) shall be deemed to have been done or takenby the Authority and shall be binding on theAuthority.

39.Power of the Central Government tosupersede the Authority—(1) If, at any time,the Central Government is of opinion—

(a) that on account of a grave emergency,the Authority is unable to discharge thefunctions and duties imposed on it by orunder the provisions of this Act; or

(b) that the Authority has persistently madedefault in complying with any directionissued by the Central Government underthis Act or in the discharge of thefunctions and duties imposed on it by orunder the provisions of this Act and as aresult of which default the financialposition of the Authority or theadministration of any airport, heliport,airstrip, civil enclave or aeronauticalcommunica-tion station hasdeteriorated; or

(c) that circumstances exist which render itnecessary in the public interest so to do,

the Central Government may, by notificationin the Official Gazette, supersede the Authorityfor such period, not exceeding six months, asmay be specified in the notification:

Provided that before issuing a notificationunder this sub-section for the reasons men-tioned in clause (b), the Central Governmentshall give a reasonable opportunity to theAuthority to show cause why it should not besuperseded and shall consider the explana-tionsand objections, if any, of the Authority.

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(2) Upon the publication of a notificationunder sub-section (1) superseding theAuthority,—

(a) all the members shall, as from the dateof supersession, vacate their offices assuch;

(b) all the powers, functions and duties whichmay, by or under the provisions of thisAct, be exercised or discharged by or onbehalf of the Authority, shall until theAuthority is re-constituted under sub-section (3), be exercised and dischargedby such person or persons as the CentralGovernment may direct;

(c) all property owned or controlled by theAuthority shall, until the Authority is re-constituted under sub-section (3), vestin the Central Government.

(3) On the expiration of period ofsupersession specified in the notification issuedunder sub-section (1), the Central Governmentmay,

(a) extend the period of supersession forsuch further term not exceeding sixmonths, as it may consider necessary; or

(b) re-constitute the Authority by freshappointment and in such case the memberswho vacated their offices under clause(a) of sub-section (2) shall not be deemeddisqualified for appointment:

Provided that the Central Government may,at any time before the expiration of the periodof supersession, whether as originally specifiedunder sub-section (1) or as extended under thissub-section, take action under clause (b) of thissub-section.

(4) The Central Government shall cause anotification issued under sub-section (1) and afull report of any action taken under this sectionand the circumstances leading to such action tobe laid before both Houses of parliament at the

earliest opportunity.

40.Power of the Central Government toissue directions— (1) Without prejudice tothe foregoing provisions of this Act, theAuthority shall, in the discharge of its functionsand duties under this Act, be bound by suchdirections on questions of policy as the CentralGovernment may give in writing to it from timeto time:

Provided that the Authority shall, as far aspracticable, be given opportunity to express itsviews before any direction is given under thissub-section.

(2) The decision of the Central Governmentwhether a question is one of policy or not shallbe final.

(3) The central Government may, from timeto time, issue directions to the Authorityregarding the discharge of any functions to itunder clause (e) of sub-section (3) of section12 and the Authority shall be bound to complywith such directions.

41.Power to make rules— (1) The CentralGovernment may, by notification in the officialGazette, make rules for carrying out theprovisions of this Act.

(2) In particular and without prejudice to thegenerality of the foregoing power, such rulesmay provide for—

(a) the period of notice as may be given bythe Central Government to terminatethe appoint-ment of any part-timemember of the Authority under clause(b) of proviso to sub-section (1) ofsection 5;

(b) the conditions of service of the membersof the Authority under sub-section (2)of section 5;

(c) the period of notice as may be given byany member to resign his office undersub-section (3) of section 5;

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(d) the provisions subject to which officersand other employees may be appointedby the Authority and the category ofofficers to be appointed after approvalof the Central Government under theproviso to sub-section (1) of section10;

(e) the provisions subject to which theAuthority may manage the airports, civilenclaves and aeronauticalcommunication stations under sub-section (1) of section 12;

(f) the manner in which the Authority mayinvest its funds under clause (b) of sub-section (3) of section 24;

(g) the form in which the annual statementof accounts shall be prepared by theAuthority under sub-section (1) ofsection 28:

(h) the form in which a report giving anaccount of its activities shall be preparedand submitted by the Authority to theCentral Government under sub-section(1) of section 29; and

(i) any other matter which is to be, or maybe, prescribed.

42.Power to make regulations— (1) TheAuthority may make regulations not inconsistentwith this Act and the rules made thereunder toprovide for all matters for which provision isnecessary or expedient for the purpose of givingeffect to the provisions of this Act.

(2) Without prejudice to the generality ofthe foregoing power, such regulations mayprovide for—

(a) the time and places of the meetings ofthe Authority and the procedure to befollowed for the transaction of businessincluding the quorum at such meetingsunder sub-section (1) of section 8;

(b) the conditions of service and theremuneration of officers and otheremployees to be appointed by theAuthority under sub-section (2) ofsection 10;

(c) the construction of residentialaccommodation for the officers andother employees appointed by theAuthority under clause (e) of sub-section(3) of section 12;

(d) the storage or processing of goods inany warehouse established by theAuthority under clause (g) of sub-section(3) of section 12 and the charging offees for such storage or processing;

(e) the contracts or class of contracts whichare to be sealed with the common seal ofthe Authority and the form and manner inwhich a contract may be made by theAuthority under sub-section (1) ofsection 21;

(f) the custody and restoration of lostproperty and the terms and conditionsunder which lost property may be restoredto the persons entitled thereto undersection 34;

(g) the disposal of any lost property in caseswhere such property is not restored;

(h) securing the safety of aircraft, vehiclesand persons using the airport or civilenclave and preventing danger to thepublic arising from the use and operationof aircraft in the airport or civil enclave;

(i) preventing obstruction within the airportor civil enclave for its normalfunctioning;

(j) prohibiting the parking or waiting of anyvehicle of carriage within the airport orcivil enclave except at places specifiedby the Authority;

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(k) prohibiting or restricting access to anypart of the airport or civil enclave;

(l) preserving order within the airport orcivil enclave and preventing damage toproperty therein;

(m) regulating or restricting advertisingwithin the airport or civil enclave;

(n) requiring any person, if so directed by anofficer appointed by the Authority inthis behalf, to leave the airport or civilenclave or any particular part of theairport or civil enclave; and

(o) generally for the efficient and propermanagement of the airport or civilenclave.

(3) Any regulation made under any of theclauses (h) to (o) (both inclusive) of sub-section(2) may provide that a contravention thereofshall be punishable with fine which may extendto five hundred rupees and in the case of acontinuing contravention with an additional finewhich may extend to twenty rupees for everyday during which such contravention continuesafter conviction for the first such contravention.

(4) No regulation made by the Authorityunder this section shall have effect until it hasbeen approved by the Central Government andpublished in the Official Gazette.

(5) Notwithstanding anything contained inthis section, the first regulations under this Actshall be made by the Central Government andshall have effect on being published in theofficial Gazette.

(6) The first regulations framed under sub-section (5) shall remain in force until such timethe Authority has made regulations and they arepublished in the Official Gazette.

43.Rules and regulations to be laid beforeparliament.— Every rule and every regulationmade under this Act shall be laid, as soon as maybe after it made, before each House ofParliament, while it is in session, for a totalperiod of thirty days which may be comprisedin one session or in two or more successivesessions, and if, before the expiry of the sessionimmediately following the session or thesuccessive sessions aforesaid, both Housesagree in making any modification in the rule orregulation, as the case may be, or both Housesagree that the rule or regulation, as the case maybe, should not be made, the rule or regulationshall thereafter have effect only in such modifiedform or be of no effect, as the case may be; so,however, that any such modification orannulment shall be without prejudice to thevalidity of anything previously done under thatrule or regulation.

44. Power to remove difficulties.— (1)If any difficulty arises in giving effect to theprovisions of this Act, the Central Governmentmay, by general or special order published inthe Official Gazette, make such provisions notinconsistent with the provisions of this Act asappear to it to be necessary or expedient for theremoval of the difficulty:

Provided that no such order shall be madeafter the expiration of one year from thecommencement of this Act.

(2) Every order made under sub-section (1)shall be laid, as soon as may be after it is made,before each House of Parliament, while it is insession, for a total period of thirty days whichmay be comprised in one session or in two ormore successive sessions, and if, before theexpiry of the session immediately followingthe session or the successive sessions aforesaid,both Houses agree in making any modification

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in the order or both Houses agree that the ordershould not be made, the order shall thereafterhave effect only in such modified form or be ofno effect, as the case may be; so, however, thatany such modification or annulment shall bewithout prejudice to the validity of anythingpreviously done under that order.

45.Amendment of Act 22 of 1934.— Insection 5 of the Aircraft Act, 1934, in sub-section (2),—

(a) in clause (b), for the words and figures“the International Airports Authority Act,1971 or the National Airports authorityAct, 1985” the words and figures “ theAirports Authority of India Act, 1994”shall be substituted;

(b) proviso to clause (b) shall be omitted.

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46.Repeal and saving — (1) On and fromthe appointed date,—

(i) the International Airports Act, 1971 andthe National Airports Authority Act,1985 shall stand repealed;

(ii) the International Airports Authority andthe National Airports Authorityconstituted under the aforesaid Acts shallcease to exist.

(2)Notwithstanding such repeal anythingdone or any action taken or purported to havebeen done or taken under the aforesaid Actsso repealed shall, in so far as it is notinconsistent with the provisions of this Act,be deemed to have been done or taken underthe corresponding provisions of this Act.

Documents

Airport Authority of India Act 1994