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The Supreme Court of India has delivered a significant judgment, upholding the powers of the Airports Economic Regulatory Authority (AERA) in a major setback for the GMR and Adani groups. The court's decision effectively rejects the challenge mounted by these conglomerates against the AERA's role in regulating airport tariffs and other crucial aspects of the aviation sector.
The legal battle stemmed from a disagreement over the AERA's authority to determine airport charges. GMR and Adani, both prominent players in the Indian airport infrastructure landscape, had argued that the AERA's regulatory framework was overly burdensome and hampered their ability to operate efficiently. They sought to limit the AERA's powers, claiming that its interventions were detrimental to the growth and development of the airport industry.
However, the Supreme Court, in its ruling, has unequivocally affirmed the AERA's position. The court emphasized that the AERA is essential for ensuring a fair and transparent regulatory environment within the aviation sector. It highlighted the AERA's role in safeguarding the interests of passengers and protecting against monopolistic practices by airport operators. This judgment underscores the importance of robust regulatory oversight in the aviation industry, particularly in a country like India with rapidly expanding air travel demand.
Source: Supreme Court upholds AERA's powers in setback to GMR, Adani groups