BENGALURU: The Kerala High Court on Monday rejected all petitions, including one from the state government, against the Center’s decision to hand over the operations of Thiruvananthapuram International Airport to Adani Enterprises Ltd.
The order clarifies Adani Enterprises’ plans to operate the airport for which the company had won the rights at an auction in August.
The state government argued that the 50-year contract to operate the airport is not in the public interest. He said the airport is currently on privileged land he owns, making a special purpose vehicle (SPV) floated by the state government for airport management eligible for preferential consideration over Adani Enterprises under Section 12A. of the Airports Authority of India (AAI) Act 1994.
However, the higher court rejected his argument. The state government is likely to appeal the verdict in the Supreme Court, according to people familiar with the talks in the state.
The AAI gave the state government the first priority in the bidding process, insofar as if the value of the bid was within the range of 10% of the winning bid, the work would be awarded. But there was a difference of 19.64% between the state government bid and the winning bid from Adani Entreprises.
The matter was heard by the high court after the Supreme Court ordered the Kerala CPM-led state government to address the high court. The Union Minister of Civil Aviation, Hardeep Singh Puri, had previously said that the award will be subject to the outcome of this petition. Kerala had also passed a unanimous resolution in the assembly opposing it and moved to the Supreme Court.
At the heart of the debate is the issue of the transfer of public lands.
The government claims that it had previously transferred 23.57 acres, the value of which is estimated ₹250 crore now, to AAI, which was operating the airport until now. It states that the land was transferred free of charge for the construction of the airport’s international terminal, on the condition that the value of the land is reflected as its capital stock in a state-owned company, when the airport is privatized. The government is in the process of seizing another 300 acres of prime land for the airport and has threatened not to cooperate with the AAI if the airport operation is turned over to a private company.
However, many, including BJP central leaders and at least one congressional leader, Trivandrum MP Shashi Tharoor, have dismissed the government’s demands. Tharoor disagreed with his party that had joined the ruling government in the state to oppose the issue in assembly.
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