THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

THE AIRPORTS AUTHORITY OF INDIA ACT, 1994

NO. 55 OF 1994

As Amended by the Airports

Authority of India (Amendment) Act 2003

THE AIRPORTS AUTHORITY OF INDIA ACT,

1994

NO. 55 OF 1994

As Amended by the Airports Authority of India (Amendment) Act 2003

An Act to provide for the constitution of the airports  Authority of India and for the transfer and vesting of the undertakings of the International Airports Authority of India and the National Airports Authority to and in the

Airports Authority of India so constituted for the better administration and cohesive management of airports

and civil enclaves whereat air transport services are operated or are intended to be operated and of all

aeronautical communication stations 1“for the purposes of establishing or assisting in the establishment of airports”* and for matters connected therewith or incidental thereto.Be it enacted by Parliament in the Forty-fifth Year of the Republic of India as follows:-

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Airports Authority of

India Act, 1994.

(2) It shall come into force on such date as the

Central Government may, by notification in the

Official Gazette, appoint.

(3) It applies to-

(a) all airports whereat air transport services are

operated or are intended to be operated,

other than airports and airfields belonging to,

or subject to the control of, any armed force

of the Union;

1 Added by section 2 of AAI Amendment Act, 2003

3

2“(aa) all private airports in so far as it relates

to providing air traffic service,to issue

directions under Section 37 to them and

for the purposes of Chapter VA”.

(b) all civil enclaves;

(c) all aeronautical communication stations; and

(d) all training stations, establishments and

workshops relating to air transport services.

2. In this Act, unless the context otherwise requires,-

(a) “aeronautical communication station” means a

station in the aeronautical communication service

which includes aeronautical practicing service,

aeronautical fixed service, aeronautical mobile

service and aeronautical radio communication

service;

(b) “airport” means a landing and taking off area for

aircrafts, usually with runways and aircraft

maintenance and passenger facilities and includes

aerodrome as defined in clause (2) of section 2 of

the Aircraft Act, 1934;

(c) “airstrip” means an area used or intended to be

used for the landing and take-off of aircrafts with

short take-off and landing characteristics and

includes all buildings and structures thereon or

appertaining thereto’

(d) “air traffic service” includes flight information

service, alerting service, air traffic advisory

service, air traffic control service, area control

service, approach control service and airport

control service;

(e) “air transport service” means any service, for any

kind of remuneration, whatsoever, for the transport

by air of persons, mail or any other thing, animate

2 Added by section 3 of AAI Amendment Act, 2003.

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or inanimate, whether such service relates to a

single flight or series of flights;

(f) “appointed day” means such date as the Central

Government may, by notification in the Official

Gazette, appoint for the purposes of section 3;

(g) ”Authority” means the Airports Authority of India

constituted under section 3;

(h) ”Chairperson” means the Chairperson of the

Authority appointed under clause (a) of subsection

(3) of section 3;

(i) “civil enclave” means the area, if any, allotted at

an airport belonging to any armed force of the

Union, for use by persons availing of any air

transport services from such airport or for the

handling of baggage or cargo by such service, and

includes land comprising of any building and

structure on such area;

(J) “heliport” means an area, either at ground level or

elevated on a structure, used or intended to be

used for the landing and take-of of helicopters and

includes any area for parking helicopters and all

buildings and structures thereon or appertaining

thereto;

(k) “International Airports Authority” means the

International Airports Authority of India constituted

under section 3 of the International Airports

Authority Act, 1971;

(l) “member” means a member of the Authority and

includes the Chairperson, but does not include, for

the purposes of sections 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 the National

Airports Authority constituted under section 3 of

the National Airports Authority Act, 1985;

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(n) “prescribed” means prescribed by rules made

under this Act’

3“(nn) ‘private airport’ means an airport owned,

developed or managed by -

(i) any person or agency other than the Authority

or any State Government,

or

(ii) any person or agency jointly with the Authority

or any State Government or both where the

share of such person or agency as the case

may be in the assets of the private airport is

more than fifty per cent ”

(o) “regulations” means regulations made under this

Act.

CHAPTER II

THE AIRPORTS AUTHORITY OF INDIA

3. (1) With effect from the appointed day, the Central

Government shall, by notification in the Official

Gazette, constitute an authority to be called the

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 movable and immovable, and to

contract and shall by the said name sue and be

sued.

(3) The Authority shall consist of-

(a) a Chairperson to be appointed by the Central

Government;

3 Added by section 4 of AAI Amendment Act, 2003

6

(b) the Director General of Civil Aviation, or an

officer not below the rank of the Deputy

Director General of Civil Aviation, to be

appointed by the Central Government, ex

officio;

(c) not less than eight and not more than fourteen

members to be appointed by the Central

Government.

(4) The Chairperson shall be a whole-time member

and 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 Chairperson and the members referred to in

clause (c) of sub-section (3) shall be chosen from

among persons who have special knowledge and

experience in air transport of any other transport

services, industry, commercial or financial matters

or administration and from among persons who

are capable of representing organizations of

workers and consumers.

4. 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

(c) is of unsound mind and stands so declared by

a competent court; or

(d) has been removed or dismissed from the

service of the Government or a body corporate

owned or controlled by the Government; or

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(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.

5. (1) Subject to the provisions of section 6,--

(i) every whole-time member (other than the ex

officio member) shall hold office for a period of

five years from the date on which he assumes

office or till he attains the age of sixty years,

whichever is earlier, and

(ii) every part-time member (other than the exofficio

member) shall hold office for a period of

three years from the date on which he

assumes office:

Provided that the Central Government may—

(a) terminate the appointment of any whole-time

member, who is not a servant of the

Government, after giving him notice for a

period of not less than three months or, in lieu

thereof, on payment of an amount equal to his

salary and allowances, if any, for a period of

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

(c) terminate at any time the appointment of any

member who is a servant of the Government.

(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 the

Government, such member shall be deemed to

have vacated his office.

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6. The Central Government shall remove 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 the

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

so 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.

7. Any person ceasing to be a member shall, unless

disqualified under section 4, be eligible for reappointment.

8. (1) The Authority shall meet at such times and places,

and shall observe such rules of procedure in

regard to the transaction of the business at its

meetings(including the quorum at such meetings)

as may be provided by regulations.

(2) The Chairperson, or, if for any reason he is unable

to attend any meeting of the Authority, 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,

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in the event of an equality of votes, the

Chairperson, or in his absence, the person

presiding, shall have and exercise a second or

casting vote.

9. No act or proceeding of the Authority shall be invalid

merely by reason of—

(a) any vacancy in, or any defect in the

constitution of, the Authority; or

(b) any defect in the appointment of a person

acting as a member of the

Authority; or

(c) any irregularity in the procedure of the

Authority not affecting the merits of the case.

10. (1) For the purpose of enabling it efficiently to

discharge its functions under this Act, the

Authority shall, subject to the provisions of section

18 and to such rules as may be made 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 Chairperson in such

rules, shall be subject to the approval of the Central

Government.

(2) Subject to the provisions of section 18, 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.

11. In the discharge of its functions under this Act, the

Authority shall act, so far as may be, on business

principles.

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CHAPTER III

FUNCTIONS OF THE AUTHORITY

12. (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, the civil

enclaves and the aeronautical communication

stations efficiently.

(2) It shall be the duty of the Authority to provide air

traffic service and air transport service at any

airport and civil enclaves.

(3) Without prejudice to the generality of the

provisions contained in sub-sections (1) and (2),

the Authority may—

(a) plan, develop, construct and maintain

runways, taxiways, aprons and terminals and

ancillary buildings at the airports and civil

enclaves;

4“(aa) establish airports, or assist in the

establishment of private airports by rendering

such technical, financial or other assistance

which the Central Government may consider

necessary for such purpose”.

(b) plan, procure, install and maintain navigational

aids, communication equipment, beacons and

ground aids at the airports and at such

locations as may be considered necessary for

safe navigation and operation of aircrafts;

(c) provide air safety services and search and

rescue, facilities in co-ordination with other

agencies;

(d) establish schools or institutions or centers for

the training of its officers and employees in

regard to any matter connected with the

purposes of this Act;

4 Added by section 5 of AAI Amendment Act, 2003

11

(e) construct residential buildings for its

employees;

(f) establish and maintain hotels, restaurants and

restrooms at or near the airports;

(g) establish warehouses and cargo complexes at

the airports for the storage or processing of

goods;

(h) arrange for postal, money exchange, insurance

and telephone facilities for the use of

passengers and other persons at the airports

and civil enclaves;

(i) make appropriate arrangements for watch and

ward at the airports and civil enclaves;

(j) regulate and control the plying of vehicles, and

the entry and exit of passengers and visitors, in

the airports and civil enclaves with due regard

to the security and protocol functions of the

Government of India;

(k) develop and provide consultancy, construction

or management services, and undertake

operations in India and abroad in relation to

airports, air-navigation services, ground aids

and safety services or any facilities thereat;

(l) establish and manage heliports and airstrips;

(m)provide such transport facility as are, in the

opinion of the Authority, necessary to the

passengers traveling by air;

(n) 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;

(o) take all such steps as may be necessary or

convenient for, or may be incidental to, the

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exercise of any power or the discharge of any

function conferred or imposed on its by this

Act;

(p) perform any other function considered

necessary or desirable by the Central

Government for ensuring the safe and efficient

operation of aircraft to, from and across the air

space of India;

(q) establish training institutes and workshops;

(r) any other activity at the airports and the civil

enclaves in the best commercial interests of

the Authority including cargo handling, setting

up of joint ventures for the discharge of any

function assigned to the Authority.

(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) authorizing the disregard by the Authority of

any law for the time being in force; or

(b) authorizing any person to institute any

proceeding in respect of duty or liability to

which the Authority or its officers or other

employees would not otherwise be subject.

5“12A (1) Notwithstanding anything contained in this Act,

the Authority may, in the public interest or in the

interest of better management of airports, make a

lease of the premises of an airport (including

buildings and structures thereon and appertaining

thereto) to carry out some of its functions under

section 12 as the Authority may deem fit:

5 Added by section 6 of the AAI Amendment Act, 2003

13

Provided lease shall not affect the functions of the

Authority under section 12 which relates to air traffic

service or watch and ward at airports and civil

enclaves.

(2) No lease under sub-section (1) shall be made without

the previous approval of the Central Government.

(3) Any money, payable by the lessee in terms of the

lease made under sub- section (1), shall form part

of the fund of the Authority and shall be credited

thereto as if such money is the receipt of the

Authority for all purposes of section 24.

(4) The lessee, who has been assigned any function of

the Authority under sub-section (1), shall have all the

powers of the Authority necessary for the

performance of such functions in terms of the lease”

CHAPTER IV

PROPERTY AND CONTRACT

13. (1) On and from the appointed day, there shall

be transferred to, and vest in, the Authority

constituted under section 3, the

undertakings of the International Airports

Authority and the National Airports

Authority.

(2) The undertaking of the International

Airports Authority or the National Airports

Authority which is transferred to, and which

vests in, the Authority under sub-section (1)

shall be deemed to include all assets,

rights, powers, authorities and privileges

and all property movable and immovable,

real or personal, corporeal or incorporeal,

present or contingent, of whatever nature

and wheresoever situate, including lands,

buildings, machinery, equipments, works,

workshops, cash balances, capital,

reserves, reserve funds, investments,

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tenancies, leases and book debts and all

other rights and interests arising out of such

property as were immediately before the

appointed day in the ownership, possession

or power of the International Airports

Authority, or as the case may be, the

National Airports Authority, in relation to its

undertaking, whether within or outside

India, all books of account and documents

relating thereto and shall also be deemed

to include all borrowings, liabilities and

obligations of whatever kind then subsisting

of the International Airports Authority, or as

the case may be, the National Airports

Authority in relation to its undertaking.

14. (1) All contracts, agreements and working

arrangements subsisting immediately before the

appointed day and affecting the International

Airports Authority, or as the case may be, the

National Airports Authority shall, in so far as they

relate to the International Airports Authority, or as

the case may be, the National Airports Authority,

cease to have effect or be enforceable against the

International Airports Authority, or as the case

may be, the National Airports Authority and shall

be of as full force and effect against or in favor of

the Authority in which the undertakings have

vested by virtue of this Act and enforceable as

fully and effectually as if, instead of the

International Airports Authority, or as the case

may be, the National Airports Authority, the

Authority had been named therein or had been a

party thereto.

(2) Any proceeding, suit or cause of action pending or

existing immediately before the appointed day by

or against the International Airports Authority or

the National Airports Authority in relation to its

undertakings may, as from that day, be continued

and enforced by or against the Authority in which it

has vested by virtue of this Act, as it might have

been enforced by or against the International

Airports Authority or the National Airports Authority

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if this Act had not been passed, and shall cease to

be enforceable by or against the International

Airports Authority, or as the case may be, the

National Airports Authority.

15. With effect from the appointed day, all licenses, permits,

quotas and exemptions, granted to the International

Airports Authority or the National Airports Authority in

connection with the affairs and business of the

International Airports Authority, or as the case may be,

the National Airports Authority, under any law for the time

being in force, shall be deemed to have been granted to

the Authority in which the undertakings of the

International Airports Authority and the National Airports

Authority have vested by virtue of this Act.

16. (1) Where any exemption from, or any assessment

with respect to, any tax has been granted or made

or any benefit by way of set off or carry forward, as

the case may be, of any unabsorbed depreciation

or investment allowance or other allowance or loss

has been extended or is available to the

International Airports Authority or the National

Airports Authority, under the Income-tax Act,

1961, such exemption, assessment or benefit

shall continue to have effect in relation to the

Authority in which the undertakings of the

International Airports Authority and the National

Airports Authority have vested by virtue of this Act.

(2) Where any payment made by the International

Airports Authority or the National Airports Authority

is exempted from deduction of the tax at source

under any provision of the Income-tax Act, 1961,

the exemption from tax will continue to be

available as if the provisions of the said Act made

applicable to the International Airports Authority or

the National Airports Authority were operative in

relation to the Authority in which the undertakings

of the International Airports Authority and the

National Airports Authority have vested by virtue

of this Act.

(3) The transfer and vesting of the undertakings or

any part thereof in terms of section 13 shall not be

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construed as a transfer within the meaning of the

Income-tax Act, 1961 for the purposes of capital

gains.

17 Any guarantee given for or in favour of the International

Airports Authority or the National Airports Authority with

respect to any loan or lease finance shall continue to be

operative in relation to the Authority in which the

undertakings of the International Airports Authority and

the National Airports Authority have vested by virtue of

this Act.

18. (1) (a) Every officer or other employee of the

International Airports Authority serving in its

employment immediately before the

appointed day shall, in so far as such

officer or other employee is employed in

connection with the undertaking which has

vested in the Authority by virtue of this Act,

becomes, as from the appointed day, an

officer or, as the case may be, other

employee of the International Airports

Division of the Authority.

(b) Every officer or other employee of the

National Airports Authority serving in its

employment immediately before the

appointed day shall, in so far as such

officer or other employee is employed in

connection with the undertaking which has

vested in the Authority by virtue of this Act,

becomes, as from the appointed day, an

officer or, as the case may be, other

employee of the National Airports Division

of the Authority.

(2) Every officer or other employee of the

International Airports Authority or the National

Airports Authority who becomes an officer or, as

the case may be, other employee of the Authority,

as referred to in sub-section (1), shall hold his

office or service therein by the same tenure, at the

same remuneration, upon the same terms and

conditions, with the same obligations and with the

same rights and privileges as to leave, passage,

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insurance, superannuation scheme, provident

fund, other funds, retirement, pension, gratuity and

other benefits as he would have held under the

International Airports Authority or, as the case

may be, the National Airports Authority if its

undertaking had not vested in the Authority and

shall continue to do so as an officer or other

employee, as the case may be, of the Authority or

until the expiry of a period of one year from the

appointed day if such officer or other employee

opts not to be the officer or other employee of the

Authority within such period:

Provided that if the Authority thinks it expedient to

extend the period so fixed, it may extend the same

up to a maximum period of one year.

(3) Where an officer or other employee of the

International Airports Authority or the National

Airports Authority opts under sub-section (2) not to

be in the employment or service of the Authority in

which the undertakings of the International

Airports Authority and the National Airports

Authority have vested, such officer or other

employee shall be deemed to have resigned from

the respective cadre.

(4) Notwithstanding anything contained in the

Industrial Disputes Act, 1947 or in any other law

for the time being in force, the transfer of the

services of any officer or other employee of the

International Airports Authority or the National

Airports Authority to the Authority shall not entitle

such officer or other employee to any

compensation under this Act or under any other

law for the time being in force and no such claim

shall be entertained by any court, tribunal or other

authority.

(5) The officers and other employees who have

retired before the appointed day from the service

of the International Airports Authority or the

National Airports Authority and are entitled to any

benefits, rights or privileges shall be entitled to

receive the same benefits, rights or privileges from

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the Authority in which the undertaking of the

International Airports Authority and the National

Airports Authority have vested.

(6) The trusts of the Provident Fund and Group

Insurance and Superannuation Scheme of the

International Airports Authority or the National

Airports Authority and any other bodies created for

the welfare of officers or employees would

continue to discharge their functions in the

Authority as was being done hitherto in the

International Airports Authority or the National

Airports and tax exemption granted to Provident

Fund or group Insurance and Superannuation

Scheme would continue to be applied to the

Authority.

(7) After the expiry of the period of one year, or the

extended period, as referred to in sub-section (2),

all the officers and other employees transferred

and appointed to the Authority, other than those

opting not to be the officers or employees of the

Authority within such period, shall be governed by

the rules and regulations made by the Authority in

respect of the service conditions of the officers

and other employees of the said Authority.

19. Any land required by the Authority for the discharge of 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.

20. Subject to the provisions of section 21, the Authority shall

be competent to enter into and perform any contract

necessary for the discharge of its functions under this

Act.

21. (1) Every contract shall, on behalf of the Authority, be

made by the Chairperson or such other member

or such officer of the Authority as may be

generally or specially empowered in this behalf by

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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 be made 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

specified 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.

CHAPTER V

FINANCE,ACCOUNTS AND AUDIT

22. The Authority may,-

(i) With the previous approval of the Central

Government, charge fees, or rent-

(a) for the landing, housing or parking of

aircraft 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 any armed force of

the Union and “aircraft operations” does not

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include operations of any aircraft belonging

to the said force;

(b) for providing air traffic services, ground

safety services, aeronautical

communications and navigational aids and

meteorological services at any airports and

at any aeronautical communication station;

(c) for the amenities given to the passengers

and visitors at any airport, civil enclave,

heliport or airstrip;

(d) for the use and employment by persons of

facilities and other services provided by the

authority at any airport, civil enclave 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, heliport or

airstrip.

6“22A. The Authority may, after the previous approval of the

Central Government in this behalf, levy on, and collect from,

the embarking passengers at an airport, the development

fees at the rate as may be prescribed and such fees shall be

credited to the Authority and shall be regulated and utilized

in the prescribed manner, for the purposes of-

(a) funding or financing the costs of upgradation,

expansion or development of the airport at which the

fee is collected; or

(b) establishment or development of a new airport in lieu

of the airport referred to in clause (a); or

(c) investment in the equity in respect of shares to be

subscribed by the Authority in companies engaged in

establishing, owning, developing, operating or

maintaining a private airport in lieu of the airport

6 Inserted by section 7 of the AAI Amendment Act, 2003.

21

referred to in clause (a) or advancement of loans to

such companies or other persons engaged in such

activities.

23. The Central government may, after due appropriation

made by Parliament by law in this behalf,-

(a) provide any capital 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.

24. (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

there from.

(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

authorized 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-

(a) deposited in the State Bank of India or any

such Scheduled bank or banks or other public

financial institutions subject to such conditions

as may, from time to time, be specified by the

Central Government; and

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(b) invested in the securities of the Central

Government or in such manner as may be

prescribed.

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.

25. (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, civil enclave, heliport or

airstrip 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 commission 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, 1956, the

Authority shall pay the balance of its annual net

profits to the Central Government.

26. (1) The Authority shall, before the commencement of

each financial year, prepare a statement of the

23

programme of its activities during the forthcoming

financial year as well as 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.

27. (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.

28. (1) The Authority shall maintain proper accounts and

other relevant records and prepare an annual

statement of accounts including the profit 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.

24

(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, documents

and papers and inspect any of the offices of the

Authority.

(4) The accounts of the Authority as certified by the

Comptroller and Auditor-General of India or any

other person appointed by him in this behalf

together with the audit report thereon shall be

forwarded annually to the Central Government

and that Government shall cause the same to be

laid before both Houses of Parliament.

7CHAPTER VA

EVICTION OF UNAUTHORISED OCCUPANTS, ETC., OF AIRPORT

PREMISES

28A. In this Chapter, unless the context otherwise requires,-

(a) “airport premises” means any premises-

(i) belonging to airport;

(ii) taken on lease for the purposes of airport;

(iii) acquired for the Authority under the provisions

of the Land Acquisition Act, 1894 or any other

corresponding law for the time being in force.

7 Added by section 8 of the AAI Amendment Act, 2003

25

Explanation. - For the removal of doubts, it is

hereby declared that for the purposes of this clause, “airport”

includes private airport;

(b) “eviction officer” means an officer of the

Authority appointed as such by it under

section 28B;

(c) “premises” means any land or building or part

of a building, and includes-

(i) the garden, grounds and outhouses, if

any, appertaining to such building or

part of a building; and

(ii) any fittings affixed to such building or

part of a building for more beneficial

enjoyment thereof;

(d) “rent”, in relation to any airport premises,

means the consideration payable periodically

for the authorised occupation of the premises,

and includes-

(i) any charge for electricity, water or any

other service in connection with the

occupation of the premises; and

(ii) any tax, by whatever name called,

payable in respect of the premises;

(e) “Tribunal” means the Airport Appellate

Tribunal established under sub-section (1) of

section 28-I;

(f) “unauthorized occupation”, in relation to any

airport premises, means the occupation by any

person of the airport premises without

authority for such occupation and includes the

continuance in occupation by any person of

the airport premises after the authority

(whether by way of grant or any other mode of

transfer) under which he was allowed to

26

occupy the premises has expired or has been

determined for any reason whatsoever.

28B. The Authority may, by general or special order in writing,

appoint such number of its officers, as it thinks fit, to be

eviction officers for the purposes of this Chapter, and

define the local limits within which, or the categories of

airport premises in respect of which, the eviction officers

shall exercise the powers conferred and perform the duties

imposed, on eviction officers by or under this Chapter.

28C. (1) If the eviction officer is of the opinion that any

persons are in unauthorised occupation of any

airport premises and that they should be evicted, the

eviction officer shall, in the manner hereinafter

provided, issue a notice in writing calling upon all

persons concerned to show cause why an order of

eviction should not be made.

(2) The notice shall-

(a) specify the grounds on which the order of

eviction is proposed to be made; and

(b) require all persons concerned, that is to say, all

persons who are or may be, in occupation of,

or claim interest in, the airport premises-

(i) to show cause, if any, against the

proposed order on or before such date

as is specified in the notice, being a date

not earlier than seven days from the date

of issue thereof, and

(ii) to appear before the eviction officer on

the date specified in the notice along

with the evidence which they intend to

produce in support of the cause shown

and also for personal hearing, if such

hearing is desired.

(3) The eviction officer shall cause the notice to be

served by having it affixed on the outer door or some

other conspicuous part of the airport premises and in

such other manner as may be prescribed, whereupon

27

the notice shall be deemed to have been duly given to

the persons concerned.

(4) Where the eviction officer knows or has reasons to

believe that any person is in occupation of the airport

premises, then, without prejudice to the provisions of

sub-section (3), he shall cause a copy of the notice to

be served on every such person by post or by

delivering or tendering it to that person or in such

other manner as may be prescribed.

28D. (1) If, after considering the cause, if any, shown by any

person in pursuance of a notice under section 28C

and any evidence produced by him in support of the

same and after personal hearing, if any, given under

sub-clause (ii) of clause (b) of sub-section (2) of

section 28C, the eviction officer is satisfied that the

airport premises are in unauthorised occupation, the

eviction officer may make an order of eviction, for

reasons to be recorded therein, directing that the

airport premises shall be vacated, on such date as

may be specified in the order, by the persons who

may be in occupation thereof, and cause a copy of

the order to be affixed on the outer door or some

other conspicuous part of the airport premises.

(2) If any person refuses or fails to comply with the order

of eviction on or before the date specified in the order

or within fifteen days of the date of publication under

sub-section (1), whichever is earlier, the eviction

officer or any other officer duly authorised by the

eviction officer in this behalf may, after the date so

specified or after the expiry of the period aforesaid,

whichever is earlier, evict that person from, and take

possession of, the airport premises and may, for that

purpose, use such force as may be necessary.

28E. (1) Where any persons have been evicted from any

airport premises under section 28D, the eviction

officer may, after giving ten days’ notice to the

persons from whom possession of the airport

premises has been taken and after publishing the

notice in at least one newspaper having circulation in

the locality, remove or cause to be removed or

28

dispose of by public auction any property remaining

on such premises.

(2) Where any property is sold under sub-section (1), the

sale proceeds thereof shall, after deducting the

expenses of the sale and the amount, if any, due to

the Central Government or the corporate authority on

account of arrears of rent or damages or costs, be

paid to such person or persons as may appear to the

eviction officer to be entitled to the same:

Provided that where the eviction officer is unable to decide as to

the person or persons to whom the balance of the amount is

payable or as to the apportionment of the same, he may refer such

dispute to the Tribunal and the decision of the Tribunal thereon

shall be final.

28F. (1) No person shall-

(a) erect or place or raise any building or any

movable or immovable structure or fixture;

(b) display or spread any goods;

(c) bring or keep any cattle or other animal,

on or against or in front of any airport premises except in

accordance with the authority (whether by way of grant or any

other mode of transfer) under which he was allowed to occupy

such airport premises.

(2) Where any building or other immovable structure or

fixture has been erected, placed or raised in any

airport premises in contravention of the provisions of

sub-section (1), the eviction officer may serve on the

person erecting such building or other structure or

fixture, a notice requiring him either to remove or

show cause why he shall not remove such building or

other structure or fixture to or from the airport

premises within such period, not being less than

seven days but not exceeding thirty days as may be

specified in the notice, and on the omission or refusal

of such person to show cause, or to remove such

building or other structure or fixture from the airport

29

premises, or where the cause shown is not, in the

opinion of the eviction officer, sufficient, the eviction

officer may, by order, remove or cause to be removed

the building or other structure or fixture from the

airport premises and the cost of such removal shall

be recoverable from such person as an arrear of land

revenue.

(3) Where any movable structure or fixture has been

erected, placed or raised, or any goods have been

displayed or spread or any cattle or other animal has

been brought or kept on any airport premises in

contravention of the provisions of sub-section (1) by

any person, the eviction officer may, by order,

remove or cause to be removed without notice, such

structure, fixture, goods, cattle or other animal, as the

case may be, from the airport premises and the cost

of such removal shall be recoverable from such

person as an arrear of land revenue.

28G. (1) Where any person is in arrears of rent payable in

respect of airport premises, the eviction officer may,

by order, require that person to pay the same within

such time and in such installments as may be

specified in the order.

(2) Where any person is, or has at any time been, in

unauthorised occupation of any airport premises, the

eviction officer may, having regard to such principles

of assessment of damages as may be prescribed,

assess the damages on account of the use and

occupation of such premises and may, by order,

require that person to pay the damages within such

time and in such installments as may be specified in

the order.

(3) While making an order under sub-section (1) or subsection

(2), the eviction officer may direct that the

arrears of rent or, as the case may be, damages shall

be payable together with simple interest at such rate

as may be prescribed.

(4) No order under sub-section (1) or sub-section (2)

shall be made against any person until after the issue

of a notice in writing to the person calling upon him

30

to show cause within such period not being less than

seven days but not exceeding thirty days as may be

specified in the notice as to why such order should

not be made, and until his objections, if any, and any

evidence he may produce in support of the same

have been considered by the eviction officer.

28H. An eviction officer shall, for the purpose of holding any

inquiry into this Chapter, have the same powers, as are

vested in a civil court under the Code of Civil Procedure,

1908, while trying a suit in respect of the following

matters, namely:-

(a) summoning and enforcing the attendance of any

person and examining him on oath;

(b) requiring the discovery and production of

documents;

(c) any other matter which may be prescribed.

28I. (1) The Central Government shall, by notification in the

Official Gazette, establish a Tribunal, to be known as

the Airport Appellate Tribunal, to exercise the

jurisdiction, powers and authority conferred on it by

or under this Act.

(2) The Tribunal shall consist of a Chairperson

(hereinafter referred to in this Act, as the Chairperson

of the Tribunal).

(3) The head office of the Tribunal shall be at New Delhi:

Provided that the Tribunal may hold its sittings at other places as

the Chairperson of the Tribunal may decide, from time to time,

having taken into consideration the convenience to decide the

appeals before the Tribunal.

(4) The Chairperson of the Tribunal shall be appointed

by the Central Government after consultation with the

Chief Justice of India.

(5) A person shall not be qualified for appointment as

Chairperson of the Tribunal unless he is, or has been,

or is qualified to be, a Judge of a High Court.

31

(6) The Chairperson of the Tribunal shall hold office as

such for a term of three years from the date on which

he enters upon his office or until he attains the age of

sixty-two years, whichever is earlier.

(7) The salaries and allowances payable to, and other

terms and conditions of service of, the Chairperson

of the Tribunal shall be such as may be prescribed:

Provided that neither the salary and allowances nor other terms

and conditions of service of the Chairperson of the Tribunal shall

be varied to his disadvantage after his appointment.

28J. (1) The Chairperson of the Tribunal may, by notice in

writing under his hand addressed to the Central

Government, resign his office:

Provided that the Chairperson of the Tribunal shall, unless he is

permitted by the Central Government to relinquish his office

sooner, continue to hold office until the expiry of three months

from the date of receipt of such notice or until a person duly

appointed as his successor enters upon his office or until the

expiry of his term of office, whichever is the earliest.

(2) The Chairperson of the Tribunal shall not be removed

from his office except by an order made by the

Central Government on the ground of proved

misbehavior or incapacity after an inquiry made by a

Judge of the Supreme Court in which such

Chairperson had been informed of the charges

against him and given reasonable opportunity of

being heard in respect of those charges.

(3) The Central Government may, by rules, regulate the

procedure for the investigation of misbehaviour or

incapacity of the Chairperson of the Tribunal.

28K. (1) Any person aggrieved by an order of the eviction

officer under the Chapter may, within fifteen days

from the date of such order, prefer an appeal to the

Tribunal in such form as may be prescribed:

Provided that the Tribunal may entertain any appeal after the

expiry of the said period of fifteen days, but not after the period of

32

thirty days from the date aforesaid it is satisfied that the appellant

was prevented by sufficient cause from filing the appeal in time.

(2) On receipt of an appeal under sub-section (1), the

Tribunal shall, after giving the appellant and the

eviction officer an opportunity of being heard, pass

such order as it thinks fit.

(3) The Tribunal shall dispose of the appeal within thirty

days from the date of filing the appeal:

Provided that the Tribunal may, for reasons to be recorded in

writing, dispose of the appeal within a further period of fifteen

days.

(4) An order of the Tribunal passed under sub-section (2)

shall be executable as a decree of a civil court and

for executing the same the Tribunal shall send a copy

thereof to the civil court having jurisdiction which

shall execute the same, as expeditiously as may be

possible, as if such order is a decree passed by that

court.

(5) On and from the date which any jurisdiction, powers

and authority becomes exercisable under this

Chapter by the Tribunal in relation to any matter, no

court (except the Supreme Court under article 136

and the High Court under articles 226 and 227 of the

Constitution) shall have, or be entitled to exercise

any jurisdiction, powers or authority in relation to

such matter.

28L. (1) The Tribunal shall not be bound by the procedure laid

down in the Code of Civil Procedure, 1908 but shall

be guided by the principles of natural justice, and,

subject to the other provisions of this Act and of any

rules made by the Central Government, the Tribunal

shall have power to lay down and regulate its own

procedure including the fixing of places and times of

its inquiry and deciding whether to sit in public or in

private.

(2) The Tribunal shall have, for the purpose of

discharging its functions under this Chapter, the

same powers as are vested in a civil court under the

33

Code of Civil Procedure, 1908, while trying a suit in

respect of the following matters, namely:-

(a) summoning and enforcing the attendance of any

person and examining him on oath;

(b) requiring the discovery and production of

documents;

(c) any other matter which may be prescribed.

(3) Any proceeding before the Tribunal shall be deemed

to be a judicial proceeding within the meaning of

sections 193 and 228, and for the purposes of section

196, of the Indian Penal Code and the Tribunal shall

be deemed to be a civil court for all the purposes of

section 195 and Chapter XXVI of the Code of Criminal

Procedure, 1973.

28M. Subject to the provisions of this Act, every order made by

an eviction officer or the Tribunal under this Chapter shall

be final and shall not be called in question in any suit,

application, execution or other proceeding and no

injunction shall be granted by any court or other authority

in respect of any action taken or intended to be taken in

pursuance of any power conferred by or under this Chapter.

28N. (1) Whoever, unlawfully occupies any airport premises,

shall be punishable with imprisonment for a term

which may extend to six years and with fine.

(2) Whoever fails to comply with any order of the

eviction officer or the Tribunal under this Chapter

shall be punishable with imprisonment for a term

which may extend to seven years and with fine.

(3) If any person who has been evicted from any airport

premises under this Chapter again occupies the

premises without authority for such occupation, he

shall be punishable with imprisonment for a term

which may extend to ten years and with fine.

(4) The court may, while convicting a person under subsection

(3), make an order for evicting that person

summarily and he shall be liable to such eviction

34

without prejudice to any other action that may be

taken under this Chapter.

28O. (1) Where any offence under this Chapter has been

committed by a company, every person who, at the

time the offence was committed, was directly in

charge of, and was responsible to, the company for

the conduct of the business of the company, as well

as the company, shall be deemed to be guilty of the

offence and shall be liable to be proceeded against

and punished accordingly:

Provided that nothing contained in this sub-section shall render

any such person liable to any punishment provided in this

Chapter, if he proves that the offence was committed without his

knowledge or he has exercised all due diligence to prevent the

commission of such offence.

(2) Notwithstanding anything contained in subsection(

1), where an offence under this Chapter has

been committed by a company and it is proved that

the offence has been committed with the consent or

connivance of, or is attributable to, any neglect on

the part of, any director, manager, secretary or other

officer of the company, such director, manager,

secretary or other officer shall also be deemed to be

guilty of that offence and shall be liable to be

proceeded against and punished accordingly.

Explanation - For the purposes of this section,-

(a) “company” means any body corporate and

includes a firm or other association of individuals;

and

(b) “director”, in relation to a firm, means a partner in

the firm.

28P. No court shall take cognizance of any offence under this

Chapter except on a complaint made by the Authority,

eviction officer or any other officer authorised by it and no

court inferior to that of a Metropolitan Magistrate or a

Judicial Magistrate of the first class shall try any offence

punishable under this Chapter.

35

28Q. If the eviction officer has reason to believe that any persons

are in an unauthorised occupation of any airport premises,

he or any other officer authorised by him in this behalf may

require those persons or any other person to furnish

information in relation to the names and other particulars of

the persons in occupation of the airport premises and every

person so required shall be bound to furnish the

information in his possession.

28R. It shall be the duty of all the officers of the Government

including police officers and any local authority to aid and

assist the eviction officer or other officers of the Authority

in the discharge of their functions under this Chapter.’

CHAPTER VI

MISCELLANEOUS

29. (1) The Authority shall, as soon as may be after the

end of each financial year, prepare and submit to

the Central Government in such form as may be

prescribed a report giving an account of its

activities during that financial year and the report

shall also give an account of the activities which

are likely to be undertaken by the Authority during

the next financial year.

(2) The Central Government shall cause such report

to be laid before both Houses of Parliament as

soon as may be after it is submitted.

30. The Authority may, by general or special order in writing,

delegate to the Chairperson or any other member or to

any officer of the authority, subject to such conditions

and limitations, if any, as may be specified in the order,

such of its powers and functions under this Act,( except

the powers under section 42) as it may deem necessary.,

31. All orders and decisions of the Authority shall be

authenticated by the signature of the Chairperson or any

other member authorized by the Authority in this behalf

and all other instruments executed by the Authority shall

be authenticated by the signature of an officer of the

Authority authorized by it in this behalf.

36

32. All officers and employees of the Authority shall, while

acting or purporting to act in pursuance of the provisions

of this Act or of any rule or regulation made there under,

be deemed to be public servants within the meaning of

section 21 of the Indian Penal Code.

33. No suit, prosecution or other legal proceeding shall lie

against the authority or any member or any officer or

other employee of the Authority 8or the Chairperson of

the Tribunal for anything which is in good faith done or

intended to be done in pursuance of this Act or of any

rule or regulation made there under or for any damage

sustained by any aircraft or vehicle in consequence of

any defect in any of the airports, civil enclaves, heliports,

airstrips, aeronautical communication stations or other

things belonging to or under the control of the Authority.

34. Subject to such regulations as the Authority may make in

this behalf, the authority shall provide for securing the

safe custody and restoration of any property which, while

not in proper custody, is found on any premises

belonging to the Authority or under its overall control or in

any aircraft on any such premises.

35. For the purposes of the Income--tax Act, 1961 or any

other enactment for the time being in force relating to

income-tax or any other tax on income profits or gains,

the Authority shall be deemed to be a company within the

meaning of the Income-tax Act, 1961 and shall be liable

to tax accordingly on its income, profits and gains.

36. The Authority may undertake to carry out on behalf of

any person any works or services or any class of works

or services on such terms and conditions as may be

agreed upon between the Authority and the person

concerned.

37. (1) The Authority or any officer specially authorized by

it in this behalf may, from time to time, by order,

issue directions, consistent with the provisions of

the Aircraft Act, 1934, and the rules made there

under, with respect to any of the matters specified

in clauses (f), (h),(i),(j),(k),(m),(p),(qq) and (r) of

8 Added by section 9 of the AAI Amendment Act, 2003

37

sub-section (2) of section 5 of that Act, to any

person or persons engaged in aircraft operations

or using any airport, heliport, airstrip or civil

enclave, in any case where the Authority or the

officer is satisfied that in the interests of the

security of India or for securing the security of the

aircraft it is necessary to do so.

(2) Every direction issued under sub-section (1) shall

be complied with by the person or persons to

whom such direction is issued.

(3) If any person willfully fails to comply with any

direction issued under this section, he shall be

punishable with imprisonment for a term which

may extend to six months or with fine which may

extend to five thousand rupees, or with both.

38. (1) If, at any time, the Central Government is of

opinion that in the public interest it is necessary or

expedient so to do, it may, by order, direct the

Authority to entrust the administration,

management or similar other functions of any

airport, heliport, airstrip, civil enclave, aeronautical

communication station, or any other agency or

department of any airport, heliport, airstrip civil

enclave or aeronautical communication station

with effect from such date and to such person as

may be specified in the order and the Authority

shall be bound to comply with such direction:

Provided that before an order is made under this sub-section

the Authority shall be given a reasonable opportunity of being

heard in the matter.

(2) Where the management of any airport, heliport,

airstrip, civil enclave or aeronautical

communication station or any other agency or

department thereof is entrusted to any person

specified under sub-section (1) (hereafter referred

to in this section as the authorized person), the

Authority shall cease to exercise and discharge all

its powers and functions under this Act in relation

to such airport, heliport, airstrip, civil enclave or

aeronautical communication station or any other

38

agency or department thereof and such powers

and functions shall be exercised and discharged

by the authorized person in accordance with the

instructions, if any, which the Central Government

may give to the authorized person from time to

time:

Provided that no such power or function as may be specified by

the Central Government by a general or special order shall be

exercised or discharged by the authorized person except with

the previous sanction of the Central Government.

(3) An order made under sub-section (1) shall, unless

rescinded, be in operation for a period of six

months from the date on which the management

of the airport, heliport, airstrip, civil enclave or

aeronautical communication station or any other

agency or department thereof is entrusted to the

authorized person:

Provided that the Central Government may extend such period

for a further period or periods not exceeding eighteen months.

(4) During the operation of an order made under subsection

(1), it shall be competent for the Central

Government to issue, from time to time, such

directions to the authority as are necessary to

enable the authorized person to exercise the

powers and discharge the functions of the

Authority under this Act in relation to the airport,

heliport, airstrip, civil enclave or aeronautical

communication station, or any other agency or

department thereof the management of which has

been entrusted to him and in particular to transfer

any sum of money from the fund of the Authority

to the authorized person for the management of

the airport, heliport, airstrip civil enclave or

aeronautical communication station or any other

agency or department thereof and every such

direction shall be complied with by the Authority.

(5) On the cesser of operation of any order made

under sub-section (1) in relation to any airport,

heliport airstrip, civil enclave or aeronautical

communication station, or any other agency or

39

department thereof the authorized person shall

cease to exercise and perform the powers and

functions of the authority under this Act in relation

to such airport, heliport, airstrip, civil enclave or

aeronautical communication station or any other

agency or department thereof and the Authority

shall continue to exercise and perform such

powers and functions in accordance with the

provisions of this Act.

(6) On the cesser or operation of any order made

under sub-section (1) in relation to any airport,

heliport, airstrip, civil enclave or aeronautical

communication station, or any other agency or

department thereof the authorized person shall

hand over to the Authority any property (including

any sum of money or other asset) remaining with

him in connection with the management of such

airport, heliport, airstrip, civil enclave or

aeronautical communication station.

(7) Anything done or any action taken lawfully by the

authorized person in relation to any airport,

heliport, airstrip, civil enclave or aeronautical

communication station or any other agency or

department thereof during the period of operation

of an order made under sub-section (1) shall be

deemed to have been done or taken by the

Authority and shall be binding on the Authority.

39. (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 the

functions and duties imposed on it by or

under the provisions of this Act; or

(b) that the Authority has persistently made

default in complying with any direction

issued by the Central Government under

this Act or in the discharge of the functions

and duties imposed on it by or under the

provisions of this Act and as a result of

which default the financial position of the

40

Authority or the administration of any

airport, heliport, airstrip, civil enclave or

aeronautical communication station has

deteriorated; or

(c) that circumstances exist which render it

necessary in the public interest so to do,

the Central Government may, by notification in the Official

Gazette, supersede the Authority for such period, not exceeding

six months, as may be specified in the notification:

Provided that before issuing a notification under this sub-section

for the reasons mentioned in clause (b), the Central

Government shall give a reasonable opportunity to the Authority

to show cause why it should not be superseded and shall

consider the explanations and objections, if any, of the

Authority.

(2) Upon the publication of a notification under subsection

(1) superseding the Authority,-

(a) all the members shall, as from the date of

supersession, vacate their offices as such;

(b) all the powers, functions and duties which

may, by or under the provisions of this Act,

be exercised or discharged by or on behalf

of the Authority, shall until the Authority is

re-constituted under sub-section (3), be

exercised and discharged by such person

or persons as the Central Government may

direct;

(c) all property owned or controlled by the

Authority shall, until the authority is reconstituted

under sub-section (3), vest in

the Central Government.

(3) On the expiration of the period of supersession

specified in the notification issued under subsection

(1), the Central Government may,

41

(a) extend the period of supersession for such

further term not exceeding six months, as it

may consider necessary; or

(b) re-constitute the Authority by fresh

appointment and in such case the members

who vacated their offices under clause (a)

of sub-section (2) shall not be deemed

disqualified for appointment:

Provided that the Central Government may, at any time before

the expiration of the period of supersession, whether as

originally specified under sub-section (1) or as extended under

this sub-section, take action under clause (b) of this subsection.

(4) The Central Government shall cause a notification

issued under sub-section (1) and a full report of

any action taken under this section and the

circumstances leading to such action to be laid

before both Houses of Parliament at the earliest

opportunity.

40. (1) Without prejudice to the foregoing provisions of

this Act, the Authority shall, in the discharge of its

functions and duties under this Act, be bound by

such directions on questions of policy as the

Central Government may give in writing to it from

time to time:

Provided that the Authority shall, as far as practicable, be given

opportunity to express its views before any direction is given

under this sub-section.

(2) The decision of the Central Government whether a

question is one of policy or not shall be final.

(3) The Central Government may, from time to time,

issue directions to the Authority regarding the

discharge of any functions to it under clause (e) of

sub-section (3) of section 12 and the Authority

shall be bound to comply with such directions.

41. (1) The Central Government may, by notification in

the Official Gazette, make rules for carrying out

42

the provisions of this Act.

(2) In particular and without prejudice to the generality

of the foregoing power, such rules may provide

for-

(a) the period of notice as may be given by the

Central Government to terminate the

appointment of any part-time member of the

Authority under clause (b) of proviso to subsection

(1) of section 5;

(b) the conditions of service of the members of

the Authority under sub-section (2) of

section 5;

(c) the period of notice as may be given by any

member to resign his office under subsection

(3) of section 5;

(d) the provisions subject to which officers and

other employees may be appointed by the

Authority and the category of officers to be

appointed after approval of the Central

Government under the proviso to subsection

(1) of section 10;

(e) the provisions subject to which the

Authority may manage the airports, civil

enclaves and aeronautical communication

stations under sub-section (1) of section 12;

9(ee) the rate of development fees and the

manner of regulating and utilizing the

fees under section 22A

(f) the manner in which the authority may

invest its funds under clause (b) of subsection

(3) of section 24;

(g) the form in which the annual statement of

accounts shall be prepared by the Authority

under sub-section (1) of section 28:

9 Added by section 10 (a) of the AAI Amendment Act, 2003

43

10(gi) the other manner of serving notice

under sub-section (3) of section 28C

11(gii) the other manner of serving notice

under sub-section (4) of section 28C

12(giii) the principles of assessment of

damages under sub-section (2) of

section 28G

13(giv) the rate of simple interest under subsection

(3) of section 28G

14(gv) any other matter under clause (c) of

section 28H

15(gvi) the salaries and allowances payable to,

and other terms and conditions of

service of, the Chairperson of the

Tribunal under sub-section (7) of section

28-I

16(gvii) the procedure for the investigation of

misbehavior or incapacity of the

Chairperson of the Tribunal under subsection

(3) of section 28J

17(gviii)the form of appeal under sub-section (I)

of section 28K

18(gix) any other matter under clause (c) of subsection

(2) of section 28L

10 Added by section 10(b) of the AAI Amendment Act, 2003

11 Added by section 10(b) of the AAI Amendment Act, 2003

12 Added by section 10(b) of the AAI Amendment Act, 2003

13 Added by section 10(b) of the AAI Amendment Act, 2003

14 Added by section 10(b) of the AAI Amendment Act, 2003

15 Added by section 10(b) of the AAI Amendment Act, 2003

16 Added by section 10(b) of the AAI Amendment Act, 2003

17 Added by section 10(b) of the AAI Amendment Act, 2003

18 Added by section 10(b) of the AAI Amendment Act, 2003

44

(h) the form in which a report giving an account

of its activities shall be prepared and

submitted by the Authority to the Central

Government under sub-section (1) of

section 29; and

(i) any other matter which is to be, or may be,

prescribed.

42. (1) The Authority may make regulations not

inconsistent with this Act and the rules made

thereunder to provide for all matters for which

provision is necessary or expedient for the

purpose of giving effect to the provisions of this

Act.

(2) Without prejudice to the generality of the foregoing

power, such regulations may provide for-

(a) the time and places of the meetings of the

Authority and the procedure to be followed

for the transaction of business including the

quorum at such meetings under subsection

(1) of section 8;

(b) the conditions of service and the

remuneration of officers and other

employees to be appointed by the Authority

under sub-section (2) of section 10;

(c) the construction of residential

accommodation for the officers and other

employees appointed by the Authority

under clause (e) of sub-section (3) of

section 12;

(d) the storage or processing of goods in any

warehouse established by the Authority

under clause (g) of sub-section (3) of

section 12 and the charging of fees for such

storage or processing;

(e) the contracts or class of contracts which are

to be sealed with the common seal of the

45

Authority and the form and manner in which

a contract may be made by the Authority

under sub-section (1) of section 21;

(f) the custody and restoration of lost property

and the terms and conditions under which

lost property may be restored to the

persons entitled thereto under section 34;

(g) the disposal of any lost property in cases

where such property is not restored;

(h) securing the safety of aircraft, vehicles and

persons using the airport or civil enclave

and preventing danger to the public arising

from the use and operation of aircraft in the

airport or civil enclave;

(i) preventing obstruction within the airport or

civil enclave for its normal functioning;

(j) prohibiting the parking or waiting of any

vehicle of carriage within the airport or civil

enclave except at places specified by the

Authority;

(k) prohibiting or restricting access to any part

of the airport or civil enclave;

(l) preserving order within the airport or civil

enclave and preventing damage to property

therein;

(m)regulating or restricting advertising within the

airport or civil enclave;

(n) requiring any person, if so directed by an

officer appointed by the Authority in this behalf,

to leave the airport or civil enclave or any

particular part of the airport or civil enclave;

and

(o) generally for the efficient and proper

management of the airport or civil enclave.

46

(3) Any regulation made under any of the

clauses (h) to (o) (both inclusive) of subsection

(2) may provide that a

contravention thereof shall be punishable

with fine which may extend to five hundred

rupees and in the case of a continuing

contravention with an additional fine which

may extend to twenty rupees for every day

during which such contravention continues

after conviction for the first such

contravention.

(4) No regulation made by the Authority under

this section shall have effect until it has

been approved by the Central Government

and published in the Official Gazette.

(5) Notwithstanding anything contained in this

section, the first regulations under this Act

shall be made by the Central Government

and shall have effect on being published in

the Official Gazette.

(6) The first regulations framed under subsection

(5) shall remain in force until such

time the Authority has made regulations

and they are published in the Official

Gazette.

43. Every rule and every regulation made under this Act shall

be laid, as soon as may be after it is made, before each

House of Parliament, while it is in session, for a total

period of thirty days which may be comprised in one

session or in two or more successive sessions, and if,

before the expiry of the session immediately following the

session or the successive sessions aforesaid, both

Houses agree in making any modification in the rule or

regulation, as the case may be, or both Houses agree

that the rule or regulations, as the case may be, should

not be made, the rule or regulation shall thereafter have

effect only in such modified form or be of no effect, as the

case may be; so, however, that any such modification or

annulment shall be without prejudice to the validity of

anything previously done under that rule or regulation.

47

44. (1) If any difficulty arises in giving effect to the

provisions of this Act, the Central Government

may, by general or special order published in the

Official Gazette, make such provisions not

inconsistent with the provisions of this Act as

appear to it to be necessary or expedient for the

removal of the difficulty:

Provided that no such order shall be made after the expiration

of one year from the commencement 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 in session,

for a total period of thirty days which may be

comprised in one session or in two or more

successive sessions, and if, before the expiry of

the session immediately following the session or

the successive sessions aforesaid, both Houses

agree in making any modification in the order or

both Houses agree that the order should not be

made, the order shall thereafter have effect only in

such modified form or be of no effect, as the case

may be; so, however, that any such modification

or annulment shall be without prejudice to the

validity of anything previously done under that

order.

45. In section 5 of the Aircrafts 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 Authority Act, 1985”, the words

and figures “the Airports Authority of India Act,

1994” shall be substituted;

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

46. (1) On and from the appointed date,-

(i) the International Airports Authority Act,

1971 and the National Airports Authority

Act, 1985 shall stand repealed;

48

(ii) the International Airports Authority and the

National Airports Authority constituted

under the aforesaid Acts shall cease to

exist.

(2) Notwithstanding such repeal, anything done or

any action taken or purported to have been done

or taken under the aforesaid Acts so repealed

shall, in so far as it is not inconsistent with the

provisions of this Act, be deemed to have been

done or taken under the corresponding provisions

of this Act.

A.C.C. UNNI,

Additional Secretary to the Govt. Of India.