Dealing with PILs filed by some NGOs against the ADF, the court held that the Airports Economic Regulatory Authority (AERA), and not the government, had the authority to allow private-led Delhi and Mumbai airports to collect the fee.
The Supreme Court today struck down the Airport Development Fees (ADF) charged on passengers by private developer in Mumbai as it was not not permitted by the regulator while it allowed the levy in Delhi to go on.
Dealing with PILs filed by some NGOs against the ADF, the court held that the Airports Economic Regulatory Authority (AERA), and not the government, had the authority to allow private-led Delhi and Mumbai airports to collect the fee.
The apex court observed that since the passengers from whom the ADF was collected so far "cannot now be identified nor can they be traced for making the refund", and also that there was no refund claims, the money should be used for development of airports only.
A bench of Justices R V Raveendran and A K Patnaik also held that while AERA had permitted Delhi International Airport Ltd (DIAL) to continue to levy the ADF through a public notice in April 2010, no such notice was issued by it in respect of Mumbai International Airport Ltd (MIAL).
"Hence MIAL could not continue to levy and collect development fee at major airport at Mumbai and "cannot do so in future unless the Regulatory Authority passes an appropriate order," the bench said while setting aside an earlier order of the Delhi High Court.
"We hold that development fees could not be levied and collected by the lessees of the two major airports, namely DIAL and MIAL on the authority of the two letters of the Central Government from the embarking passengers," it said.
The apex court clarified that ADF could be levied only after AERA approves it, fixed the rate and allow its collection from the passengers.
According to rough estimates, GMR-led DIAL has collected about Rs1,200 crore till 2010 through the ADF and the GVK-led MIAL collected Rs 1,300 crore. The ADF was being charged from air passengers by DIAL and MIAL from March and April 2009 respectively.
NGOs, including Consumer Online Foundation, had contended that the fee was illegal as it was not approved by AERA.
The court said that after January 2009 when AERA was notified, ADF was not valid as the regulator had not approved it. The court also termed the two letters written by the government to airports directing to levy ADF as "ultra vires" (illegal).
"We declare that with effect from January 1, 2009, no ADF could be levied or collected from the embarking passengers at major airports under Section 22A of the 1994 Act, unless AERA determines the rates of such development fee," the apex court said.
In 2009, the High Court had upheld Rs200 as ADF for domestic travel and Rs1,300 for international trip from those departing Delhi and Rs100 and Rs600 respectively for those from Mumbai airports.
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