AAI Act - 1994

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THE AIRPORTS

AUTHORITY OF INDIA

ACT, 1994

NO. 55 OF 1994As Amended by the Airports

Authority of India (Amendment)

Act 2003

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THE AIRPORTS AUTHORITY OF INDIA ACT,1994

NO. 55 OF 1994As Amended by the Airports Authority of India

(Amendment) Act 2003

An Act to provide for the constitution of the airportsAuthority of India and for the transfer and vesting of theundertakings of the International Airports Authority ofIndia and the National Airports Authority to and in theAirports Authority of India so constituted for the betteradministration and cohesive management of airportsand civil enclaves whereat air transport services are

operated or are intended to be operated and of allaeronautical communication stations 1for thepurposes of establishing or assisting in theestablishment of airports* and for matters connectedtherewith or incidental thereto.

Be it enacted by Parliament in the Forty-fifth Year of theRepublic of India as follows:-

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Airports Authority ofIndia Act, 1994.

(2) It shall come into force on such date as theCentral Government may, by notification in theOfficial Gazette, appoint.

(3) It applies to-

(a) all airports whereat air transport services areoperated or are intended to be operated,other than airports and airfields belonging to,or subject to the control of, any armed forceof the Union;

1Added by section 2 of AAI Amendment Act, 2003

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2(aa) all private airports in so far as it relatesto providing air traffic service,to issue

directions under Section 37 to them andfor the purposes of Chapter VA.

(b) all civil enclaves;

(c) all aeronautical communication stations; and

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

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

(a) aeronautical communication station means astation in the aeronautical communication servicewhich includes aeronautical practicing service,aeronautical fixed service, aeronautical mobileservice and aeronautical radio communicationservice;

(b) airport means a landing and taking off area foraircrafts, usually with runways and aircraftmaintenance and passenger facilities and includes

aerodrome as defined in clause (2) of section 2 ofthe Aircraft Act, 1934;

(c) airstrip means an area used or intended to beused for the landing and take-off of aircrafts withshort take-off and landing characteristics andincludes all buildings and structures thereon orappertaining thereto

(d) air traffic service includes flight informationservice, alerting service, air traffic advisory

service, air traffic control service, area controlservice, approach control service and airportcontrol service;

(e) air transport service means any service, for anykind of remuneration, whatsoever, for the transportby air of persons, mail or any other thing, animate

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

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or inanimate, whether such service relates to asingle flight or series of flights;

(f) appointed day means such date as the CentralGovernment may, by notification in the OfficialGazette, appoint for the purposes of section 3;

(g) Authority means the Airports Authority of Indiaconstituted under section 3;

(h) Chairperson means the Chairperson of theAuthority appointed under clause (a) of sub-section (3) of section 3;

(i) civil enclave means the area, if any, allotted atan airport belonging to any armed force of theUnion, for use by persons availing of any airtransport services from such airport or for thehandling of baggage or cargo by such service, andincludes land comprising of any building andstructure on such area;

(J) heliport means an area, either at ground level orelevated on a structure, used or intended to be

used for the landing and take-of of helicopters andincludes any area for parking helicopters and allbuildings and structures thereon or appertainingthereto;

(k) International Airports Authority means theInternational Airports Authority of India constitutedunder section 3 of the International AirportsAuthority Act, 1971;

(l) member means a member of the Authority and

includes the Chairperson, but does not include, forthe purposes of sections 4,5,6 and 7, an ex officiomember referred to in clause (b) of sub-section (3)of section 3;

(m) National Airports Authority means the NationalAirports Authority constituted under section 3 ofthe National Airports Authority Act, 1985;

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(n) prescribed means prescribed by rules madeunder this Act

3(nn) private airport means an airport owned,developed or managed by -

(i) any person or agency other than the Authorityor any State Government,

or

(ii) any person or agency jointly with the Authorityor any State Government or both where theshare of such person or agency as the case

may be in the assets of the private airport ismore than fifty per cent

(o) regulations means regulations made under thisAct.

CHAPTER II

THE AIRPORTS AUTHORITY OF INDIA

3. (1) With effect from the appointed day, the CentralGovernment shall, by notification in the OfficialGazette, constitute an authority to be called theAirports Authority of India.

(2) The Authority shall be a body corporate by thename aforesaid having perpetual succession anda common seal, with power, subject to theprovisions of this Act, to acquire, hold and disposeof property both movable and immovable, and to

contract and shall by the said name sue and besued.

(3) The Authority shall consist of-

(a) a Chairperson to be appointed by the CentralGovernment;


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

officer not below the rank of the DeputyDirector General of Civil Aviation, to beappointed by the Central Government, exofficio;

(c) not less than eight and not more than fourteenmembers to be appointed by the CentralGovernment.

(4) The Chairperson shall be a whole-time memberand other members referred to in clause (c) of

sub-section (3) may be appointed as whole-timeor part-time members as the Central Governmentmay think fit.

(5) The Chairperson and the members referred to inclause (c) of sub-section (3) shall be chosen fromamong persons who have special knowledge andexperience in air transport of any other transportservices, industry, commercial or financial mattersor administration and from among persons whoare capable of representing organizations of

workers and consumers.

4. A person shall be disqualified for being appointed as amember if he-

(a) has been convicted and sentenced toimprisonment for an offence, which, in theopinion of the Central Government, involvesmoral turpitude; or

(b) is an undischarged insolvent; or

(c) is of unsound mind and stands so declared bya competent court; or

(d) has been removed or dismissed from theservice of the Government or a body corporateowned or controlled by the Government; or

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(e) has in the opinion of the Central Governmentsuch financial or other interest in the Authority

as is likely to affect prejudicially the dischargeby him of his functions as a member.

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

(i) every whole-time member (other than the exofficio member) shall hold office for a period offive years from the date on which he assumesoffice or till he attains the age of sixty years,whichever is earlier, and

(ii) every part-time member (other than the ex-officio member) shall hold office for a period ofthree years from the date on which heassumes office:

Provided that the Central Government may

(a) terminate the appointment of any whole-timemember, who is not a servant of theGovernment, after giving him notice for aperiod of not less than three months or, in lieu

thereof, on payment of an amount equal to hissalary and allowances, if any, for a period ofthree months;

(b) terminate the appointment of any part-timemember who is not a servant of theGovernment after giving him notice for suchperiod as may be prescribed; and

(c) terminate at any time the appointment of anymember who is a servant of the Government.

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

(3) Any member may resign his office by giving noticein writing for such period as may be prescribed tothe Central Government and, on such resignationbeing notified in the Official Gazette by theGovernment, such member shall be deemed tohave vacated his office.

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6. The Central Government shall remove a member if he

(a) becomes subject to any of the disqualificationsmentioned in section 4:

Provided that no member shall be removed on the ground thathe has become subject to the disqualification mentioned in theclause (e) of that section, unless he has been given areasonable 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 theAuthority, absent from three consecutivemeetings of the Authority; or

(d) in the opinion of the Central Government, hasso abused his position as to render hiscontinuance in office detrimental to the publicinterest:

Provided that no member shall be removed under this clause

unless he has been given a reasonable opportunity of beingheard in the matter.

7. Any person ceasing to be a member shall, unlessdisqualified under section 4, be eligible for re-appointment.

8. (1) The Authority shall meet at such times and places,and shall observe such rules of procedure inregard to the transaction of the business at itsmeetings(including the quorum at such meetings)

as may be provided by regulations.

(2) The Chairperson, or, if for any reason he is unableto attend any meeting of the Authority, any othermember chosen by the members present at themeeting shall preside at the meeting.

(3) All questions which come up before any meetingof the Authority shall be decided by a majority ofthe votes of the members present and voting, and,

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in the event of an equality of votes, theChairperson, or in his absence, the person

presiding, shall have and exercise a second orcasting vote.

9. No act or proceeding 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 the case.

10. (1) For the purpose of enabling it efficiently todischarge its functions under this Act, theAuthority shall, subject to the provisions of section18 and to such rules as may be made in thisbehalf, appoint (whether on deputation orotherwise) such number of officers and other

employees as it may consider necessary:

Provided that the appointment of such category of officers, asmay be specified after consultation with the Chairperson in suchrules, shall be subject to the approval of the CentralGovernment.

(2) Subject to the provisions of section 18, everyofficer or other employee appointed by theAuthority shall be subject to such conditions ofservice and shall be entitled to such remuneration

as may be determined by regulations.

11. In the discharge of its functions under this Act, theAuthority shall act, so far as may be, on businessprinciples.

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CHAPTER III

FUNCTIONS OF THE AUTHORITY

12. (1) Subject to the rules, if any, made by the CentralGovernment in this behalf, it shall be the functionof the Authority to manage the airports, the civilenclaves and the aeronautical communicationstations efficiently.

(2) It shall be the duty of the Authority to provide airtraffic service and air transport service at anyairport and civil enclaves.

(3) Without prejudice to the generality of theprovisions contained in sub-sections (1) and (2),the Authority may

(a) plan, develop, construct and maintainrunways, taxiways, aprons and terminals andancillary buildings at the airports and civilenclaves;

4(aa) establish airports, or assist in the

establishment of private airports by renderingsuch technical, financial or other assistancewhich the Central Government may considernecessary for such purpose.

(b) plan, procure, install and maintain navigationalaids, communication equipment, beacons andground aids at the airports and at suchlocations as may be considered necessary forsafe navigation and operation of aircrafts;

(c) provide air safety services and search andrescue, facilities in co-ordination with otheragencies;

(d) establish schools or institutions or centers forthe training of its officers and employees inregard to any matter connected with thepurposes of this Act;


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(e) construct residential buildings for its

employees;

(f) establish and maintain hotels, restaurants andrestrooms at or near the airports;

(g) establish warehouses and cargo complexes atthe airports for the storage or processing ofgoods;

(h) arrange for postal, money exchange, insuranceand telephone facilities for the use of

passengers and other persons at the airportsand civil enclaves;

(i) make appropriate arrangements for watch andward at the airports and civil enclaves;

(j) regulate and control the plying of vehicles, andthe entry and exit of passengers and visitors, inthe airports and civil enclaves with due regardto the security and protocol functions of theGovernment of India;

(k) develop and provide consultancy, constructionor management services, and undertakeoperations in India and abroad in relation toairports, air-navigation services, ground aidsand safety services or any facilities thereat;

(l) establish and manage heliports and airstrips;

(m)provide such transport facility as are, in theopinion of the Authority, necessary to the

passengers traveling by air;

(n) form one or more companies under theCompanies Act, 1956 or under any other lawrelating to companies to further the efficientdischarge of the functions imposed on it by thisAct;

(o) take all such steps as may be necessary orconvenient for, or may be incidental to, the

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exercise of any power or the discharge of anyfunction conferred or imposed on its by this

Act;

(p) perform any other function considerednecessary or desirable by the CentralGovernment for ensuring the safe and efficientoperation of aircraft to, from and across the airspace of India;

(q) establish training institutes and workshops;

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

enclaves in the best commercial interests ofthe Authority including cargo handling, settingup of joint ventures for the discharge of anyfunction assigned to the Authority.

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

(5) Nothing contained in this section shall be

construed as-

(a) authorizing the disregard by the Authority ofany law for the time being in force; or

(b) authorizing any person to institute anyproceeding in respect of duty or liability towhich the Authority or its officers or otheremployees would not otherwise be subject.

512A (1) Notwithstanding anything contained in this Act,

the Authority may, in the public interest or in theinterest of better management of airports, make alease of the premises of an airport (includingbuildings and structures thereon and appertainingthereto) to carry out some of its functions undersection 12 as the Authority may deem fit:

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

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Provided lease shall not affect the functions of theAuthority under section 12 which relates to air traffic

service or watch and ward at airports and civilenclaves.

(2) No lease under sub-section (1) shall be made withoutthe previous approval of the Central Government.

(3) Any money, payable by the lessee in terms of thelease made under sub- section (1), shall form partof the fund of the Authority and shall be creditedthereto as if such money is the receipt of theAuthority for all purposes of section 24.

(4) The lessee, who has been assigned any function ofthe Authority under sub-section (1), shall have all thepowers of the Authority necessary for theperformance of such functions in terms of the lease

CHAPTER IV

PROPERTY AND CONTRACT

13. (1) On and from the appointed day, there shallbe transferred to, and vest in, the Authorityconstituted under section 3, theundertakings of the International AirportsAuthority and the National AirportsAuthority.

(2) The undertaking of the InternationalAirports Authority or the National AirportsAuthority 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 privilegesand all property movable and immovable,real or personal, corporeal or incorporeal,present or contingent, of whatever natureand 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 allother rights and interests arising out of such

property as were immediately before theappointed day in the ownership, possessionor power of the International AirportsAuthority, or as the case may be, theNational Airports Authority, in relation to itsundertaking, whether within or outsideIndia, all books of account and documentsrelating thereto and shall also be deemedto include all borrowings, liabilities andobligations of whatever kind then subsistingof the International Airports Authority, or as

the case may be, the National AirportsAuthority in relation to its undertaking.

14. (1) All contracts, agreements and workingarrangements subsisting immediately before theappointed day and affecting the InternationalAirports Authority, or as the case may be, theNational Airports Authority shall, in so far as theyrelate to the International Airports Authority, or asthe case may be, the National Airports Authority,

cease to have effect or be enforceable against theInternational Airports Authority, or as the casemay be, the National Airports Authority and shallbe of as full force and effect against or in favor ofthe Authority in which the undertakings havevested by virtue of this Act and enforceable asfully and effectually as if, instead of theInternational Airports Authority, or as the casemay be, the National Airports Authority, theAuthority had been named therein or had been aparty thereto.

(2) Any proceeding, suit or cause of action pending orexisting immediately before the appointed day byor against the International Airports Authority orthe National Airports Authority in relation to itsundertakings may, as from that day, be continuedand enforced by or against the Authority in which ithas vested by virtue of this Act, as it might havebeen enforced by or against the InternationalAirports Authority or the National Airports Authority

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if this Act had not been passed, and shall cease tobe enforceable by or against the International

Airports Authority, or as the case may be, theNational Airports Authority.

15. With effect from the appointed day, all licenses, permits,quotas and exemptions, granted to the InternationalAirports Authority or the National Airports Authority inconnection with the affairs and business of theInternational Airports Authority, or as the case may be,the National Airports Authority, under any law for the timebeing in force, shall be deemed to have been granted tothe Authority in which the undertakings of the

International Airports Authority and the National AirportsAuthority have vested by virtue of this Act.

16. (1) Where any exemption from, or any assessmentwith respect to, any tax has been granted or madeor any benefit by way of set off or carry forward, asthe case may be, of any unabsorbed depreciationor investment allowance or other allowance or losshas been extended or is available to theInternational Airports Authority or the NationalAirports Authority, under the Income-tax Act,

1961, such exemption, assessment or benefitshall continue to have effect in relation to theAuthority in which the undertakings of theInternational Airports Authority and the NationalAirports Authority have vested by virtue of this Act.

(2) Where any payment made by the InternationalAirports Authority or the National Airports Authorityis exempted from deduction of the tax at sourceunder 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 madeapplicable to the International Airports Authority orthe National Airports Authority were operative inrelation to the Authority in which the undertakingsof the International Airports Authority and theNational Airports Authority have vested by virtueof this Act.

(3) The transfer and vesting of the undertakings orany part thereof in terms of section 13 shall not be

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construed as a transfer within the meaning of theIncome-tax Act, 1961 for the purposes of capital

gains.

17 Any guarantee given for or in favour of the InternationalAirports Authority or the National Airports Authority withrespect to any loan or lease finance shall continue to beoperative in relation to the Authority in which theundertakings of the International Airports Authority andthe National Airports Authority have vested by virtue ofthis Act.

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

International Airports Authority serving in itsemployment immediately before theappointed day shall, in so far as suchofficer or other employee is employed inconnection with the undertaking which hasvested in the Authority by virtue of this Act,becomes, as from the appointed day, anofficer or, as the case may be, otheremployee of the International AirportsDivision of the Authority.

(b) Every officer or other employee of theNational Airports Authority serving in itsemployment immediately before theappointed day shall, in so far as suchofficer or other employee is employed inconnection with the undertaking which hasvested in the Authority by virtue of this Act,becomes, as from the appointed day, anofficer or, as the case may be, otheremployee of the National Airports Divisionof the Authority.

(2) Every officer or other employee of theInternational Airports Authority or the NationalAirports Authority who becomes an officer or, asthe case may be, other employee of the Authority,as referred to in sub-section (1), shall hold hisoffice or service therein by the same tenure, at thesame remuneration, upon the same terms andconditions, with the same obligations and with thesame rights and privileges as to leave, passage,

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insurance, superannuation scheme, providentfund, other funds, retirement, pension, gratuity and

other benefits 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 Authority oruntil the expiry of a period of one year from theappointed day if such officer or other employeeopts not to be the officer or other employee of theAuthority within such period:

Provided that if the Authority thinks it expedient toextend the period so fixed, it may extend the sameup to a maximum period of one year.

(3) Where an officer or other employee of theInternational Airports Authority or the NationalAirports Authority opts under sub-section (2) not tobe in the employment or service of the Authority inwhich the undertakings of the InternationalAirports Authority and the National AirportsAuthority have vested, such officer or other

employee shall be deemed to have resigned fromthe respective cadre.

(4) Notwithstanding anything contained in theIndustrial Disputes Act, 1947 or in any other lawfor the time being in force, the transfer of theservices of any officer or other employee of theInternational Airports Authority or the NationalAirports Authority to the Authority shall not entitlesuch officer or other employee to anycompensation under this Act or under any other

law for the time being in force and no such claimshall be entertained by any court, tribunal or otherauthority.

(5) The officers and other employees who haveretired before the appointed day from the serviceof the International Airports Authority or theNational Airports Authority and are entitled to anybenefits, rights or privileges shall be entitled toreceive the same benefits, rights or privileges from

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the Authority in which the undertaking of theInternational Airports Authority and the National

Airports Authority have vested.

(6) The trusts of the Provident Fund and GroupInsurance and Superannuation Scheme of theInternational Airports Authority or the NationalAirports Authority and any other bodies created forthe welfare of officers or employees wouldcontinue to discharge their functions in theAuthority as was being done hitherto in theInternational Airports Authority or the National

Airports and tax exemption granted to ProvidentFund or group Insurance and SuperannuationScheme would continue to be applied to theAuthority.

(7) After the expiry of the period of one year, or theextended period, as referred to in sub-section (2),all the officers and other employees transferredand appointed to the Authority, other than thoseopting not to be the officers or employees of theAuthority within such period, shall be governed by

the rules and regulations made by the Authority inrespect of the service conditions of the officersand other employees of the said Authority.

19. Any land required by the Authority for the discharge of itsfunctions under this Act shall be deemed to be neededfor a public purpose and such land may be acquired forthe Authority under the provisions of the Land AcquisitionAct, 1894 or of any other corresponding law for the timebeing in force.

20. Subject to the provisions of section 21, the Authority shallbe competent to enter into and perform any contractnecessary for the discharge of its functions under thisAct.

21. (1) Every contract shall, on behalf of the Authority, bemade by the Chairperson or such other memberor such officer of the Authority as may begenerally or specially empowered in this behalf by

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the Authority and such contracts or class ofcontracts as may be specified in the regulations

shall be sealed with the common seal of theAuthority:

Provided that no contract exceeding such value or amount asthe Central Government may, from time to time, by order, fix inthis behalf shall be made unless it has been previouslyapproved by the Authority:

Provided further that no contract for the acquisition or sale ofimmovable property or for the lease of any such property for a

term exceeding thirty years and no other contract exceedingsuch value or amount as the Central Government may, fromtime to time, by order, fix in this behalf shall be made unless ithas been previously approved by the Central Government.

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

(3) No contract which is not in accordance with the

provisions of this Act and the regulations shall bebinding 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 ofaircraft or for any other service or facilityoffered in connection with aircraftoperations at any airport, heliport or airstrip;

Explanation. - In this sub-clause aircraft does not includean aircraft belonging to any armed force ofthe Union and aircraft operations does not

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include operations of any aircraft belongingto the said force;

(b) for providing air traffic services, groundsafety services, aeronauticalcommunications and navigational aids andmeteorological services at any airports andat any aeronautical communication station;

(c) for the amenities given to the passengersand visitors at any airport, civil enclave,heliport or airstrip;

(d) for the use and employment by persons offacilities and other services provided by theauthority at any airport, civil enclave heliportor airstrip;

(ii) with due regard to the instructions that the CentralGovernment may give to the authority, from timeto time, charge fees or rent from persons who aregiven by the authority any facility for carrying onany trade or business at any airport, heliport orairstrip.

622A. The Authority may, after the previous approval of theCentral Government in this behalf, levy on, and collect from,the embarking passengers at an airport, the developmentfees at the rate as may be prescribed and such fees shall becredited to the Authority and shall be regulated and utilizedin the prescribed manner, for the purposes of-

(a) funding or financing the costs of upgradation,expansion or development of the airport at which thefee is collected; or

(b) establishment or development of a new airport in lieuof the airport referred to in clause (a); or

(c) investment in the equity in respect of shares to besubscribed by the Authority in companies engaged inestablishing, owning, developing, operating ormaintaining a private airport in lieu of the airport

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

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referred to in clause (a) or advancement of loans tosuch companies or other persons engaged in such

activities.

23. The Central government may, after due appropriationmade by Parliament by law in this behalf,-

(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 thatGovernment may determine;

(b) pay to the Authority, on such terms andconditions as the Central Governmentmay determine, by way of loans orgrants such sums of money as thatGovernment may consider necessary forthe efficient discharge by the Authorityof its functions under this Act.

24. (1) The Authority shall have its own fund and allreceipts of the Authority shall be credited thereto

and all payments of the authority shall be madethere from.

(2) The Authority shall have power, subject to theprovisions of this Act, to spend such sums as itthinks fit to cover all administrative expenses ofthe authority and on objects or for purposesauthorized by this Act and such sums shall betreated as expenditure out of the fund of theAuthority.

(3) All moneys standing at the credit of the Authoritywhich cannot immediately be applied as providedin sub-section (2), shall be-

(a) deposited in the State Bank of India or anysuch Scheduled bank or banks or other publicfinancial institutions subject to such conditionsas may, from time to time, be specified by theCentral Government; and

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(b) invested in the securities of the CentralGovernment or in such manner as may be

prescribed.

Explanation- In this sub-section. Scheduled bank has thesame meaning as in clause (e) of section 2 of the Reserve Bankof India Act, 1934.

25. (1) The Authority 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 facilities orservices at any airport, civil enclave, heliport or

airstrip or for the purpose of providing against anytemporary decrease of revenue or increase ofexpenditure from transient causes or for purposesof replacement or for meeting expenditure arisingfrom loss or damage from fire, cyclone, air-crashor other accident or for meeting any liability arisingout of any act or commission in the discharge ofits functions under this Act:

Provided that without prejudice to the right of the Authority toestablish specific reserves for one or more specific purposes,

the Authority shall also have the power to establish a generalreserve:

Provided further that the sums set apart annually in respect ofeach or any of the specific and general reserves and theaggregate at any time of such sums shall not exceed such limitsas may, from time to time, be fixed in that behalf by the CentralGovernment.

(2) After making provision for such reserve fund orfunds and for bad and doubtful debts, depreciation

in assets and all other matters which are usuallyprovided for by companies registered andincorporated under the Companies Act, 1956, theAuthority shall pay the balance of its annual netprofits to the Central Government.

26. (1) The Authority shall, before the commencement ofeach financial year, prepare a statement of the

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programme of its activities during the forthcomingfinancial year as well as financial estimate 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 Central Government.

(3) The statement and the financial estimates of theAuthority may, with the approval of the CentralGovernment, be revised by the Authority.

27. (1) The Authority may, with the consent of the CentralGovernment or in accordance with the terms ofany general or special authority given to it by theCentral Government, borrow money from anysource by the issue of bonds, debentures or suchother instruments as it may deem fit fordischarging all or any of its functions under thisAct.

(2) The Central Government may guarantee in such

manner as it thinks fit, the repayment of theprincipal and the payment of interest thereon withrespect to the loans borrowed by the Authorityunder sub-section (1)

(3) Subject to such limits as the Central Governmentmay, from time to time, lay down, the Authoritymay borrow temporarily by way of overdraft orotherwise such amounts as it may require fordischarging its functions under this Act.

28. (1) The Authority shall maintain proper accounts andother relevant records and prepare an annualstatement of accounts including the profit and lossaccount and the balance-sheet in such form asmay be prescribed by the Central Government inconsultation with the Comptroller and Auditor-General of India.

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(2) The accounts of the authority shall be auditedannually by the Comptroller and Auditor-General

of India and any expenditure incurred by him inconnection with such audit shall be payable by theAuthority to the Comptroller and Auditor-Generalof India.

(3) The Comptroller and Auditor-General of India andany person appointed by him in connection withthe audit of the accounts of the Authority shallhave the same rights and privileges and authorityin connection with such audit as the Comptrollerand Auditor-General has in connection with the

audit of Government accounts and, in particularshall have the right to demand the production ofbooks, accounts, connected vouchers, documentsand papers and inspect any of the offices of theAuthority.

(4) The accounts of the Authority as certified by theComptroller and Auditor-General of India or anyother person appointed by him in this behalftogether with the audit report thereon shall beforwarded annually to the Central Government

and that Government shall cause the same to belaid before both Houses of Parliament.

7CHAPTER VA

EVICTION OF UNAUTHORISED OCCUPANTS, ETC., OF AIRPORTPREMISES

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 provisionsof the Land Acquisition Act, 1894 or any othercorresponding law for the time being in force.


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Explanation. - For the removal of doubts, it is

hereby declared that for the purposes of this clause, airportincludes private airport;

(b) eviction officer means an officer of theAuthority appointed as such by it undersection 28B;

(c) premises means any land or building or partof a building, and includes-

(i) the garden, grounds and outhouses, if

any, appertaining to such building orpart of a building; and

(ii) any fittings affixed to such building orpart of a building for more beneficialenjoyment thereof;

(d) rent, in relation to any airport premises,means the consideration payable periodicallyfor the authorised occupation of the premises,and includes-

(i) any charge for electricity, water or anyother service in connection with theoccupation of the premises; and

(ii) any tax, by whatever name called,payable in respect of the premises;

(e) Tribunal means the Airport AppellateTribunal established under sub-section (1) ofsection 28-I;

(f) unauthorized occupation, in relation to anyairport premises, means the occupation by anyperson of the airport premises withoutauthority for such occupation and includes thecontinuance in occupation by any person ofthe airport premises after the authority(whether by way of grant or any other mode oftransfer) under which he was allowed to

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occupy the premises has expired or has beendetermined 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 beeviction officers for the purposes of this Chapter, anddefine the local limits within which, or the categories ofairport premises in respect of which, the eviction officersshall exercise the powers conferred and perform the dutiesimposed, on eviction officers by or under this Chapter.

28C. (1) If the eviction officer is of the opinion that anypersons are in unauthorised occupation of any

airport premises and that they should be evicted, theeviction officer shall, in the manner hereinafterprovided, issue a notice in writing calling upon allpersons concerned to show cause why an order ofeviction should not be made.

(2) The notice shall-

(a) specify the grounds on which the order ofeviction is proposed to be made; and

(b) require all persons concerned, that is to say, allpersons who are or may be, in occupation of,or claim interest in, the airport premises-

(i) to show cause, if any, against theproposed order on or before such dateas is specified in the notice, being a datenot earlier than seven days from the dateof issue thereof, and

(ii) to appear before the eviction officer on

the date specified in the notice alongwith the evidence which they intend toproduce in support of the cause shownand also for personal hearing, if suchhearing is desired.

(3) The eviction officer shall cause the notice to beserved by having it affixed on the outer door or someother conspicuous part of the airport premises and insuch other manner as may be prescribed, whereupon

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the notice shall be deemed to have been duly given tothe persons concerned.

(4) Where the eviction officer knows or has reasons tobelieve that any person is in occupation of the airportpremises, then, without prejudice to the provisions ofsub-section (3), he shall cause a copy of the notice tobe served on every such person by post or bydelivering or tendering it to that person or in suchother manner as may be prescribed.

28D. (1) If, after considering the cause, if any, shown by anyperson in pursuance of a notice under section 28C

and any evidence produced by him in support of thesame and after personal hearing, if any, given undersub-clause (ii) of clause (b) of sub-section (2) ofsection 28C, the eviction officer is satisfied that theairport premises are in unauthorised occupation, theeviction officer may make an order of eviction, forreasons to be recorded therein, directing that theairport premises shall be vacated, on such date asmay be specified in the order, by the persons whomay be in occupation thereof, and cause a copy ofthe 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 orderof eviction on or before the date specified in the orderor within fifteen days of the date of publication undersub-section (1), whichever is earlier, the evictionofficer or any other officer duly authorised by theeviction officer in this behalf may, after the date sospecified or after the expiry of the period aforesaid,whichever is earlier, evict that person from, and takepossession 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 anyairport premises under section 28D, the evictionofficer may, after giving ten days notice to thepersons from whom possession of the airportpremises has been taken and after publishing thenotice in at least one newspaper having circulation inthe locality, remove or cause to be removed or

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dispose of by public auction any property remainingon such premises.

(2) Where any property is sold under sub-section (1), thesale proceeds thereof shall, after deducting theexpenses of the sale and the amount, if any, due tothe Central Government or the corporate authority onaccount of arrears of rent or damages or costs, bepaid to such person or persons as may appear to theeviction officer to be entitled to the same:

Provided that where the eviction officer is unable to decide as tothe person or persons to whom the balance of the amount is

payable or as to the apportionment of the same, he may refer suchdispute to the Tribunal and the decision of the Tribunal thereonshall be final.

28F. (1) No person shall-

(a) erect or place or raise any building or anymovable 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 inaccordance with the authority (whether by way of grant or anyother mode of transfer) under which he was allowed to occupysuch airport premises.

(2) Where any building or other immovable structure orfixture has been erected, placed or raised in anyairport premises in contravention of the provisions of

sub-section (1), the eviction officer may serve on theperson erecting such building or other structure orfixture, a notice requiring him either to remove orshow cause why he shall not remove such building orother structure or fixture to or from the airportpremises within such period, not being less thanseven days but not exceeding thirty days as may bespecified in the notice, and on the omission or refusalof such person to show cause, or to remove suchbuilding or other structure or fixture from the airport

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premises, or where the cause shown is not, in theopinion of the eviction officer, sufficient, the eviction

officer may, by order, remove or cause to be removedthe building or other structure or fixture from theairport premises and the cost of such removal shallbe recoverable from such person as an arrear of landrevenue.

(3) Where any movable structure or fixture has beenerected, placed or raised, or any goods have beendisplayed or spread or any cattle or other animal hasbeen brought or kept on any airport premises incontravention of the provisions of sub-section (1) by

any person, the eviction officer may, by order,remove or cause to be removed without notice, suchstructure, fixture, goods, cattle or other animal, as thecase may be, from the airport premises and the costof such removal shall be recoverable from suchperson as an arrear of land revenue.

28G. (1) Where any person is in arrears of rent payable inrespect of airport premises, the eviction officer may,by order, require that person to pay the same withinsuch time and in such installments as may be

specified in the order.

(2) Where any person is, or has at any time been, inunauthorised occupation of any airport premises, theeviction officer may, having regard to such principlesof assessment of damages as may be prescribed,assess the damages on account of the use andoccupation of such premises and may, by order,require that person to pay the damages within suchtime and in such installments as may be specified inthe order.

(3) While making an order under sub-section (1) or sub-section (2), the eviction officer may direct that thearrears of rent or, as the case may be, damages shallbe payable together with simple interest at such rateas may be prescribed.

(4) No order under sub-section (1) or sub-section (2)shall be made against any person until after the issueof a notice in writing to the person calling upon him

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to show cause within such period not being less thanseven days but not exceeding thirty days as may be

specified in the notice as to why such order shouldnot be made, and until his objections, if any, and anyevidence he may produce in support of the samehave been considered by the eviction officer.

28H. An eviction officer shall, for the purpose of holding anyinquiry into this Chapter, have the same powers, as arevested in a civil court under the Code of Civil Procedure,1908, while trying a suit in respect of the followingmatters, namely:-

(a) summoning and enforcing the attendance of anyperson and examining him on oath;

(b) requiring the discovery and production ofdocuments;

(c) any other matter which may be prescribed.

28I. (1) The Central Government shall, by notification in theOfficial Gazette, establish a Tribunal, to be known asthe Airport Appellate Tribunal, to exercise the

jurisdiction, powers and authority conferred on it byor under this Act.

(2) The Tribunal shall consist of a Chairperson(hereinafter referred to in this Act, as the Chairpersonof 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 asthe Chairperson of the Tribunal may decide, from time to time,

having taken into consideration the convenience to decide theappeals before the Tribunal.

(4) The Chairperson of the Tribunal shall be appointedby the Central Government after consultation with theChief Justice of India.

(5) A person shall not be qualified for appointment asChairperson of the Tribunal unless he is, or has been,or is qualified to be, a Judge of a High Court.

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

such for a term of three years from the date on whichhe enters upon his office or until he attains the age ofsixty-two years, whichever is earlier.

(7) The salaries and allowances payable to, and otherterms and conditions of service of, the Chairpersonof the Tribunal shall be such as may be prescribed:

Provided that neither the salary and allowances nor other termsand conditions of service of the Chairperson of the Tribunal shallbe varied to his disadvantage after his appointment.

28J. (1) The Chairperson of the Tribunal may, by notice inwriting under his hand addressed to the CentralGovernment, resign his office:

Provided that the Chairperson of the Tribunal shall, unless he ispermitted by the Central Government to relinquish his officesooner, continue to hold office until the expiry of three monthsfrom the date of receipt of such notice or until a person dulyappointed as his successor enters upon his office or until theexpiry of his term of office, whichever is the earliest.

(2) The Chairperson of the Tribunal shall not be removedfrom his office except by an order made by theCentral Government on the ground of provedmisbehavior or incapacity after an inquiry made by aJudge of the Supreme Court in which suchChairperson had been informed of the chargesagainst him and given reasonable opportunity ofbeing heard in respect of those charges.

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

procedure for the investigation of misbehaviour orincapacity of the Chairperson of the Tribunal.

28K. (1) Any person aggrieved by an order of the evictionofficer under the Chapter may, within fifteen daysfrom the date of such order, prefer an appeal to theTribunal in such form as may be prescribed:

Provided that the Tribunal may entertain any appeal after theexpiry of the said period of fifteen days, but not after the period of

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thirty days from the date aforesaid it is satisfied that the appellantwas prevented by sufficient cause from filing the appeal in time.

(2) On receipt of an appeal under sub-section (1), theTribunal shall, after giving the appellant and theeviction officer an opportunity of being heard, passsuch order as it thinks fit.

(3) The Tribunal shall dispose of the appeal within thirtydays from the date of filing the appeal:

Provided that the Tribunal may, for reasons to be recorded inwriting, 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 andfor executing the same the Tribunal shall send a copythereof to the civil court having jurisdiction whichshall execute the same, as expeditiously as may bepossible, as if such order is a decree passed by thatcourt.

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

and authority becomes exercisable under thisChapter by the Tribunal in relation to any matter, nocourt (except the Supreme Court under article 136and the High Court under articles 226 and 227 of theConstitution) shall have, or be entitled to exerciseany jurisdiction, powers or authority in relation tosuch matter.

28L. (1) The Tribunal shall not be bound by the procedure laiddown in the Code of Civil Procedure, 1908 but shallbe guided by the principles of natural justice, and,

subject to the other provisions of this Act and of anyrules made by the Central Government, the Tribunalshall have power to lay down and regulate its ownprocedure including the fixing of places and times ofits inquiry and deciding whether to sit in public or inprivate.

(2) The Tribunal shall have, for the purpose ofdischarging its functions under this Chapter, thesame powers as are vested in a civil court under the

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Code of Civil Procedure, 1908, while trying a suit inrespect of the following matters, namely:-

(a) summoning and enforcing the attendance of anyperson and examining him on oath;

(b) requiring the discovery and production ofdocuments;

(c) any other matter which may be prescribed.

(3) Any proceeding before the Tribunal shall be deemedto be a judicial proceeding within the meaning of

sections 193 and 228, and for the purposes of section196, of the Indian Penal Code and the Tribunal shallbe deemed to be a civil court for all the purposes ofsection 195 and Chapter XXVI of the Code of CriminalProcedure, 1973.

28M. Subject to the provisions of this Act, every order made byan eviction officer or the Tribunal under this Chapter shallbe final and shall not be called in question in any suit,application, execution or other proceeding and noinjunction shall be granted by any court or other authority

in respect of any action taken or intended to be taken inpursuance of any power conferred by or under this Chapter.

28N. (1) Whoever, unlawfully occupies any airport premises,shall be punishable with imprisonment for a termwhich may extend to six years and with fine.

(2) Whoever fails to comply with any order of theeviction officer or the Tribunal under this Chaptershall be punishable with imprisonment for a termwhich may extend to seven years and with fine.

(3) If any person who has been evicted from any airportpremises under this Chapter again occupies thepremises without authority for such occupation, heshall be punishable with imprisonment for a termwhich may extend to ten years and with fine.

(4) The court may, while convicting a person under sub-section (3), make an order for evicting that personsummarily and he shall be liable to such eviction

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without prejudice to any other action that may betaken under this Chapter.

28O. (1) Where any offence under this Chapter has beencommitted by a company, every person who, at thetime the offence was committed, was directly incharge of, and was responsible to, the company forthe conduct of the business of the company, as wellas the company, shall be deemed to be guilty of theoffence and shall be liable to be proceeded againstand punished accordingly:

Provided that nothing contained in this sub-section shall render

any such person liable to any punishment provided in thisChapter, if he proves that the offence was committed without hisknowledge or he has exercised all due diligence to prevent thecommission of such offence.

(2) Notwithstanding anything contained in sub-section(1), where an offence under this Chapter hasbeen committed by a company and it is proved thatthe offence has been committed with the consent orconnivance of, or is attributable to, any neglect onthe part of, any director, manager, secretary or other

officer of the company, such director, manager,secretary or other officer shall also be deemed to beguilty of that offence and shall be liable to beproceeded against and punished accordingly.

Explanation - For the purposes of this section,-

(a) company means any body corporate andincludes a firm or other association of individuals;and

(b) director, in relation to a firm, means a partner inthe firm.

28P. No court shall take cognizance of any offence under thisChapter except on a complaint made by the Authority,eviction officer or any other officer authorised by it and nocourt inferior to that of a Metropolitan Magistrate or aJudicial Magistrate of the first class shall try any offencepunishable under this Chapter.

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28Q. If the eviction officer has reason to believe that any personsare in an unauthorised occupation of any airport premises,

he or any other officer authorised by him in this behalf mayrequire those persons or any other person to furnishinformation in relation to the names and other particulars ofthe persons in occupation of the airport premises and everyperson so required shall be bound to furnish theinformation in his possession.

28R. It shall be the duty of all the officers of the Governmentincluding police officers and any local authority to aid andassist the eviction officer or other officers of the Authorityin the discharge of their functions under this Chapter.

CHAPTER VIMISCELLANEOUS

29. (1) The Authority shall, as soon as may be after theend of each financial year, prepare and submit tothe Central 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 which

are likely to be undertaken by the Authority duringthe next financial year.

(2) The Central Government shall cause such reportto be laid before both Houses of Parliament assoon 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 toany officer of the authority, subject to such conditionsand limitations, if any, as may be specified in the order,

such of its powers and functions under this Act,( exceptthe powers under section 42) as it may deem necessary.,

31. All orders and decisions of the Authority shall beauthenticated by the signature of the Chairperson or anyother member authorized by the Authority in this behalfand all other instruments executed by the Authority shallbe authenticated by the signature of an officer of theAuthority authorized by it in this behalf.

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32. All officers and employees of the Authority shall, whileacting 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 ofsection 21 of the Indian Penal Code.

33. No suit, prosecution or other legal proceeding shall lieagainst the authority or any member or any officer orother employee of the Authority8or the Chairperson ofthe Tribunal for anything which is in good faith done orintended to be done in pursuance of this Act or of anyrule or regulation made there under or for any damagesustained by any aircraft or vehicle in consequence of

any defect in any of the airports, civil enclaves, heliports,airstrips, aeronautical communication stations or otherthings belonging to or under the control of the Authority.

34. Subject to such regulations as the Authority may make inthis behalf, the authority shall provide for securing thesafe custody and restoration of any property which, whilenot in proper custody, is found on any premisesbelonging to the Authority or under its overall control or inany aircraft on any such premises.

35. For the purposes of the Income--tax Act, 1961 or anyother enactment for the time being in force relating toincome-tax or any other tax on income profits or gains,the Authority shall be deemed to be a company within themeaning of the Income-tax Act, 1961 and shall be liableto tax accordingly on its income, profits and gains.

36. The Authority may undertake to carry out on behalf ofany person any works or services or any class of worksor services on such terms and conditions as may beagreed upon between the Authority and the person

concerned.

37. (1) The Authority or any officer specially authorized byit in this behalf may, from time to time, by order,issue directions, consistent with the provisions ofthe Aircraft Act, 1934, and the rules made thereunder, with respect to any of the matters specifiedin clauses (f), (h),(i),(j),(k),(m),(p),(qq) and (r) of


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sub-section (2) of section 5 of that Act, to anyperson or persons engaged in aircraft operations

or using any airport, heliport, airstrip or civilenclave, in any case where the Authority or theofficer is satisfied that in the interests of thesecurity of India or for securing the security of theaircraft it is necessary to do so.

(2) Every direction issued under sub-section (1) shallbe complied with by the person or persons towhom such direction is issued.

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

direction issued under this section, he shall bepunishable with imprisonment for a term whichmay extend to six months or with fine which mayextend to five thousand rupees, or with both.

38. (1) If, at any time, the Central Government is ofopinion that in the public interest it is necessary orexpedient so to do, it may, by order, direct theAuthority to entrust the administration,management or similar other functions of anyairport, heliport, airstrip, civil enclave, aeronautical

communication station, or any other agency ordepartment of any airport, heliport, airstrip civilenclave or aeronautical communication stationwith effect from such date and to such person asmay be specified in the order and the Authorityshall be bound to comply with such direction:

Provided that before an order is made under this sub-sectionthe Authority shall be given a reasonable opportunity of beingheard in the matter.

(2) Where the management of any airport, heliport,airstrip, civil enclave or aeronauticalcommunication station or any other agency ordepartment thereof is entrusted to any personspecified under sub-section (1) (hereafter referredto in this section as the authorized person), theAuthority shall cease to exercise and discharge allits powers and functions under this Act in relationto such airport, heliport, airstrip, civil enclave oraeronautical communication station or any other

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agency or department thereof and such powersand functions shall be exercised and discharged

by the authorized person in accordance with theinstructions, if any, which the Central Governmentmay give to the authorized person from time totime:

Provided that no such power or function as may be specified bythe Central Government by a general or special order shall beexercised or discharged by the authorized person except withthe previous sanction of the Central Government.

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

rescinded, be in operation for a period of sixmonths from the date on which the managementof the airport, heliport, airstrip, civil enclave oraeronautical communication station or any otheragency or department thereof is entrusted to theauthorized person:

Provided that the Central Government may extend such periodfor a further period or periods not exceeding eighteen months.

(4) During the operation of an order made under sub-

section (1), it shall be competent for the CentralGovernment to issue, from time to time, suchdirections to the authority as are necessary toenable the authorized person to exercise thepowers and discharge the functions of theAuthority under this Act in relation to the airport,heliport, airstrip, civil enclave or aeronauticalcommunication station, or any other agency ordepartment thereof the management of which hasbeen entrusted to him and in particular to transferany sum of money from the fund of the Authority

to the authorized person for the management ofthe airport, heliport, airstrip civil enclave oraeronautical communication station or any otheragency or department thereof and every suchdirection shall be complied with by the Authority.

(5) On the cesser of operation of any order madeunder sub-section (1) in relation to any airport,heliport airstrip, civil enclave or aeronauticalcommunication station, or any other agency or

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department thereof the authorized person shallcease to exercise and perform the powers and

functions of the authority under this Act in relationto such airport, heliport, airstrip, civil enclave oraeronautical communication station or any otheragency or department thereof and the Authorityshall continue to exercise and perform suchpowers and functions in accordance with theprovisions of this Act.

(6) On the cesser or operation of any order madeunder sub-section (1) in relation to any airport,heliport, airstrip, civil enclave or aeronautical

communication station, or any other agency ordepartment thereof the authorized person shallhand over to the Authority any property (includingany sum of money or other asset) remaining withhim in connection with the management of suchairport, heliport, airstrip, civil enclave oraeronautical communication station.

(7) Anything done or any action taken lawfully by theauthorized person in relation to any airport,heliport, airstrip, civil enclave or aeronautical

communication station or any other agency ordepartment thereof during the period of operationof an order made under sub-section (1) shall bedeemed to have been done or taken by theAuthority and shall be binding on the Authority.

39. (1) If, at any time, the Central Government is ofopinion-

(a) that on account of a grave emergency, theAuthority is unable to discharge the

functions 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 the functionsand duties imposed on it by or under theprovisions of this Act and as a result ofwhich default the financial position of the

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Authority or the administration of anyairport, heliport, airstrip, civil enclave or

aeronautical communication station hasdeteriorated; or

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

the Central Government may, by notification in the OfficialGazette, supersede the Authority for such period, not exceedingsix 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 CentralGovernment shall give a reasonable opportunity to the Authorityto show cause why it should not be superseded and shallconsider the explanations and objections, if any, of theAuthority.

(2) Upon the publication of a notification under sub-section (1) superseding the Authority,-

(a) all the members shall, as from the date ofsupersession, vacate their offices as such;

(b) all the powers, functions and duties whichmay, by or under the provisions of this Act,be exercised or discharged by or on behalfof the Authority, shall until the Authority isre-constituted under sub-section (3), beexercised and discharged by such personor persons as the Central Government maydirect;

(c) all property owned or controlled by the

Authority shall, until the authority is re-constituted under sub-section (3), vest inthe Central Government.

(3) On the expiration of the period of supersessionspecified in the notification issued under sub-section (1), the Central Government may,

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(a) extend the period of supersession for suchfurther term not exceeding six months, 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 beforethe expiration of the period of supersession, whether asoriginally specified under sub-section (1) or as extended under

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

(4) The Central Government shall cause a notificationissued under sub-section (1) and a full report ofany action taken under this section and thecircumstances leading to such action to be laidbefore both Houses of Parliament at the earliestopportunity.

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

this Act, the Authority shall, in the discharge of itsfunctions and duties under this Act, be bound bysuch directions on questions of policy as theCentral Government may give in writing to it fromtime to time:

Provided that the Authority shall, as far as practicable, be givenopportunity to express its views before any direction is givenunder 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 thedischarge of any functions to it under clause (e) ofsub-section (3) of section 12 and the Authorityshall be bound to comply with such directions.

41. (1) The Central Government may, by notification inthe Official Gazette, make rules for carrying out

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the provisions of this Act.

(2) In particular and without prejudice to the generalityof the foregoing power, such rules may providefor-

(a) the period of notice as may be given by theCentral Government to terminate theappointment of any part-time member of theAuthority under clause (b) of proviso to sub-section (1) of section 5;

(b) the conditions of service of the members of

the Authority under sub-section (2) ofsection 5;

(c) the period of notice as may be given by anymember to resign his office under sub-section (3) of section 5;

(d) the provisions subject to which officers andother employees may be appointed by theAuthority and the category of officers to beappointed after approval of the Central

Government under the proviso to sub-section (1) of section 10;

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

9(ee) the rate of development fees and themanner of regulating and utilizing thefees under section 22A

(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 statement ofaccounts shall be prepared by the Authorityunder sub-section (1) of section 28:

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

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10

(gi) the other manner of serving noticeunder sub-section (3) of section 28C11(gii) the other manner of serving notice

under sub-section (4) of section 28C12(giii) the principles of assessment of

damages under sub-section (2) ofsection 28G

13(giv) the rate of simple interest under sub-

section (3) of section 28G

14(gv) any other matter under clause (c) ofsection 28H

15(gvi) the salaries and allowances payable to,and other terms and conditions ofservice of, the Chairperson of theTribunal under sub-section (7) of section28-I

16(gvii) the procedure for the investigation ofmisbehavior or incapacity of theChairperson of the Tribunal under sub-section (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 sub-section (2) of section 28L

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









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(h) the form in which a report giving an accountof its activities shall be prepared and

submitted by the Authority to the CentralGovernment under sub-section (1) ofsection 29; and

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

42. (1) The Authority may make regulations notinconsistent with this Act and the rules madethereunder to provide for all matters for which

provision is necessary or expedient for thepurpose of giving effect to the provisions of thisAct.

(2) Without prejudice to the generality of the foregoingpower, such regulations may provide for-

(a) the time and places of the meetings of theAuthority and the procedure to be followedfor the transaction of business including thequorum at such meetings under sub-

section (1) of section 8;

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

(c) the construction of residentialaccommodation for the officers and otheremployees appointed by the Authorityunder clause (e) of sub-section (3) of

section 12;

(d) the storage or processing of goods in anywarehouse established by the Authorityunder clause (g) of sub-section (3) ofsection 12 and the charging of fees for suchstorage or processing;

(e) the contracts or class of contracts which areto be sealed with the common seal of the

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Authority and the form and manner in whicha contract may be made by the Authority

under sub-section (1) of section 21;

(f) the custody and restoration of lost propertyand the terms and conditions under whichlost property may be restored to thepersons entitled thereto under section 34;

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

(h) securing the safety of aircraft, vehicles and

persons using the airport or civil enclaveand preventing danger to the public arisingfrom the use and operation of aircraft in theairport or civil enclave;

(i) preventing obstruction within the airport orcivil enclave for its normal functioning;

(j) prohibiting the parking or waiting of anyvehicle of carriage within the airport or civilenclave except at places specified by the

Authority;

(k) prohibiting or restricting access to any partof the airport or civil enclave;

(l) preserving order within the airport or civilenclave and preventing damage to propertytherein;

(m)regulating or restricting advertising within theairport or civil enclave;

(n) requiring any person, if so directed by anofficer appointed by the Authority in this behalf,to leave the airport or civil enclave or anyparticular part of the airport or civil enclave;and

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

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(3) Any regulation made under any of theclauses (h) to (o) (both inclusive) of sub-

section (2) may provide that acontravention thereof shall be punishablewith fine which may extend to five hundredrupees and in the case of a continuingcontravention with an additional fine whichmay extend to twenty rupees for every dayduring which such contravention continuesafter conviction for the first suchcontravention.

(4) No regulation made by the Authority underthis section shall have effect until it hasbeen approved by the Central Governmentand published in the Official Gazette.

(5) Notwithstanding anything contained in thissection, the first regulations under this Actshall be made by the Central Governmentand shall have effect on being published inthe Official Gazette.

(6) The first regulations framed under sub-section (5) shall remain in force until suchtime the Authority has made regulationsand they are published in the OfficialGazette.

43. Every rule and every regulation made under this Act shallbe laid, as soon as may be after it is made, before eachHouse of Parliament, while it is in session, for a totalperiod of thirty days which may be comprised in onesession or in two or more successive sessions, and if,

before the expiry of the session immediately following thesession or the successive sessions aforesaid, bothHouses agree in making any modification in the rule orregulation, as the case may be, or both Houses agreethat the rule or regulations, as the case may be, shouldnot be made, the rule or regulation shall thereafter haveeffect only in such modified form or be of no effect, as thecase may be; so, however, that any such modification orannulment shall be without prejudice to the validity ofanything previously done under that rule or regulation.

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

provisions of this Act, the Central Governmentmay, by general or special order published in theOfficial 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 made after the expirationof 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, beforeeach House of Parliament, while it is in session,for a total period of thirty days which may becomprised in one session or in two or moresuccessive sessions, and if, before the expiry ofthe session immediately following the session orthe successive sessions aforesaid, both Housesagree in making any modification in the order orboth Houses agree that the order should not bemade, the order shall thereafter have effect only insuch modified form or be of no effect, as the case

may be; so, however, that any such modificationor annulment shall be without prejudice to thevalidity of anything previously done under thatorder.

45. In section 5 of the Aircrafts Act, 1934, in sub-section (2),-

(a) in clause (b), for the words and figures theInternational Airports Authority Act, 1971 or theNational Airports Authority Act, 1985, the wordsand 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 AuthorityAct, 1985 shall stand repealed;

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(ii) the International Airports Authority and theNational Airports Authority constituted

under the aforesaid Acts shall cease toexist.

(2) Notwithstanding such repeal, anything done orany action taken or purported to have been doneor taken under the aforesaid Acts so repealedshall, in so far as it is not inconsistent with theprovisions of this Act, be deemed to have beendone or taken under the corresponding provisionsof this Act.

A.C.C. UNNI,Additional Secretary to the Govt. Of India.

AAI Act - 1994

Documents

Transcript of AAI Act - 1994