No stay on airport privatisation

Delhi HC refuses to stay process; to give verdict by February 13

BY A CORRESPONDENT
February 8, 2006

Reliance Airport Developers received a minor setback at the Delhi High Court yesterday, with the HC refusing to stay the airport modernisation project. The court also observed that since airport modernisation is of national importance, the case must be heard and disposed off fast. Expect the court's final verdict by February 13.

Reliance Airport Developers owned by the Anil Ambani's ADAG group lost out during the bidding process, though it had emerged as one of the toppers during the technical bids. It had also emerged top during the financial bids, but GMR-Fraport was allowed to match the Reliance bid to emerge on top. Reliance immediately challenged the bidding process in court.

According to Additional Solicitor General Gopal Subramanium who represented the government of India, the Reliance petition must be dismissed since the Government had abided by all the necessary rules. He also asked for an earlier disposal of the case, since airport modernisation must be over by the Commonwealth Games in 2010.

Representing Reliance Airport Developers, Mukul Rohtagi called for quashing the entire tender process and calling fresh bids. He alleged that the bidding process was arbitrary and that GMR-Fraport was the favoured party.