HC refuses to stay transfer of ownership to successful bidders

New Delhi, Apr 3 (UNI) The Delhi High Court today declined to grant an interim stay on a plea submitted by Anil Ambani-owned Reliance Airport Developers on the proposed transfer of ownership of Delhi and Mumbai airports by the Airports Authority of India (AAI) to rival bidders GMR-Fraport and GVK-ACS for modernisation.

During a "special mention," a division bench headed by Justice Tirath Singh Thakur declined to entertain the plea made by Reliance, seeking direction to the Government not to sign agreements with rival consortia--GMR-Fraport and GVK-ACS for handing over the possession of the two airports in accordance with impugned tender.

The Court said the government had assured the bench that any action by the government would be subject to the final order on the petition which was due in a few days.

On February 16, the Government had submitted before the High Court that the impugned tender process for modernisation of the Delhi and Mumbai airports awarded to private bidders-- GMR-Fraport and GVK-ACS-- respectively would be subject to the outcome of the writ filed by the Reliance-ASA consortium challenging the bids.

Additional Solicitor General (ASG) Gopal Subramaniam had submitted that the government and the successful bidders would abide by the order of the court, even if 74 per cent equity was transferred by signing agreements.

As the matter is sub-judice, the government should not transfer the equity of both Delhi and Mumbai airports to the private bidders-- GMR-Fraport and GVK-ACS-- respectively, the Counsel appearing for the Relaince said.

UNI PAT ARB HT1720