dna impact: Software charge on entry of consignments into airport illegal- Regulator

Months after dna first reported how cargo forwarding companies are allegedly being forced to shell out Rs300 per entry of consignment as software charges, Airports Economic Regulatory Authority of India (AERA), the aviation economic watchdog, has ordered Mumbai airport to stop levying these charges, terming them as illegal.

Industry insiders claim that about 4,500-5,000 shipments are made daily from Chhatrapati Shivaji International Airport (CSIA), which translates into multi-crore rupees of windfall for the airport operator. The burden on the exporter then automatically gets passed on to the end consumer, thereby raising the price of the products.

dna is in possession of a letter written by Radhika R, an officer on special duty from AERA, which says that since the software levies are for enhancement of cargo terminal processing, which is an aeronautical service, they should be determined by the regulator.

"AERA has ordered that the charges presently being levied for the service provider, M/s Kale Logistics, without prior approval of the authority are illegal and should be stopped with immediate effect," the letter reads. MIAL has appointed Kale Logistics as a concessionaire.

Cargo exporters claim that the software is being forced upon them by MIAL, thereby making the trade difficult for them. The cargo trader community has been shelling out crores of rupees extra with no benefit whatsoever, they say.

MIAL officials said that they have not yet received the AERA order and, therefore, cannot comment on it. However, they would appeal against any such order by the regulator if it came to them, they said. Earlier, a MIAL official had said that the GMAX service was not mandatory and trade members were not under any obligation to opt for the same.

Amit Maheshwari, CEO of Softlink, a technology company providing solutions to the logistics industry, said: "The AERA order is good for the traders as it will save them from an unnecessary cess."