Collection of a development fee (DF) at the Delhi airport has become embroiled in a fresh controversy, with the Consumer Affairs Ministry asking the airport regulator to credit around Rs 1,500 crore already collected by operator DIAL to the Consumer Welfare Fund.
The collection of DF at the Delhi airport from December 1 has already been in a controversy as the legality of the decision of the Airports Economic Regulatory Authority (AERA) to allow it has been challenged in the Rajya Sabha.
In a recent letter to the regulator AERA, the Ministry said that “certain amounts were collected from passengers before the decision of the regulator was finalised and communicated. This amount should rightfully belong to consumers ... It is suggested that the total amount collected could be credited to the Consumer Welfare Fund (CWF) being administered by this Ministry.”
In the letter, the Consumer Affairs Secretary, Mr Rajiv Agarwal, said it would administratively difficult to identify each consumer and return the small amount to them individually. Hence, the DF should be credited to the CWF.
The CWF is utilised by the Ministry to promote consumer welfare activities and spread consumer awareness.
Escrow accounts
The AERA had allowed the GMR-led Delhi International Airport Ltd (DIAL) to collect Rs 1,300 each from international passengers and Rs 200 from each domestic passenger as DF from December 1.
The DF collected was being deposited in escrow accounts over which the Airports Authority of India and the government had powers to ensure that all receipts were properly accounted for and utilised only for “the permitted purposes of airport development.”
An estimate, tabled in the Rajya Sabha, said that Rs 1481.72 crore was collected as DF before the regulator gave formal approval to DIAL.
In 2009, DF collection at Delhi and Mumbai airports was upheld by the Delhi High Court. However, it was quashed by the Supreme Court in April 2011, which directed AERA to pass appropriate orders before it was collected.
The AERA then allowed DIAL to start its collection from December 1, 2011.
However, the AERA order was challenged in the Rajya Sabha where CPI(M) MP K.N. Balagopal said it was “illegal” as necessary amendments to the rules had not been passed by Parliament, though it was on its agenda.
A statutory motion, listed in the Rajya Sabha's agenda in the just-concluded winter session, could not be taken up.