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Showing contexts for: PPP in Delhi International Airport Pvt. Ltd. vs Union Of India & Anr. on 10 April, 2017Matching Fragments
35. Clause 12 of the policy further provides for development of airports by private sector or in PPP mode as under:
"12. Airports developed by State Governments, Private sector or in PPP mode MoCA will continue to encourage development of airports by the State Governments or the private sector or in PPP mode. MoCA will also encourage the State Governments to develop new airports in their State by forming SPV with Airport Authority of India or with other interested Public Sector Undertakings/ Industry in order to create stake and ownership. Wherever so required, MoCA will endeavour to provide regulatory certainty with the following framework:
e) xxxx xxxx xxxx
f) xxxx xxxx xxxx"
(emphasis supplied)
36. Apparently, Clause 12(d) creates a classification amongst PPP Airports. The respondents seek to justify the said classification contending that the existing PPP airports which are governed by OMDA executed much prior to NCAP, 2016 form a separate class and are not equally placed either with the "airports of AAI" or "future PPP airports".
48. We are also of the view that such classification is destructive of the object sought to be achieved by NCAP, 2016. The exclusion of existing PPP airports from availing the benefit of Clause 12(d), which would enable to develop the existing airports and to increase revenue to the public exchequer, would be completely arbitrary and discriminatory. The exclusion of existing PPP airports is also against the interest of the public at large since while the liberalized use of airport land by the AAI airports and future PPP airports will promote wider economy in the vicinity and benefit the passengers and the public at large in terms of overall development, the economic activity in the vicinity of the existing PPP airports would remain stagnant and deprive the passengers the same benefits.
50. For the aforesaid reason, we are of the view that the classification that has been drawn between the "existing PPP Airports" and "future PPP Airports" is in clear violation of Article 14 of the Constitution of India. While passing the order dated 10.10.2016, it appears to us that the Respondent No.1 failed to take into consideration the effect of clause 2.2.3 of OMDA and more particularly the fact that the power under Section 12(A)(1) of AAI Act has to be exercised in the interest of better management of airports and in the public interest. Liberalizing the end use of the airport land and unlocking the potential of the same is undoubtedly to advance the public interest and for better management of the airport. The Respondent No.1 had apparently failed to notice that denial of the benefit of liberalization of the restrictions on the use of land allocated for commercial use of airports to the "existing PPP airports" would manifestly be against public interest. Such exclusion of "existing PPP airports" from the benefit of liberalization of land use therefore apparently suffers from the vice of arbitrariness.