CAG again finds violations in Mumbai, Delhi airports1 min read . Updated: 08 Aug 2016, 11:00 PM IST
CAG said GVK Power-run Mumbai International Airport did not share revenue with AAI in line with the provisions of its agreement
New Delhi. The Comptroller and Auditor General of India (CAG) has again found violations of the terms of the agreement signed the privatisation of the Mumbai and Delhi airports in 2006.
CAG, in its report presented on Monday in Parliament, said GVK Power & Infrastructure Ltd-run Mumbai International Airport Ltd did not share revenue with state-run Airports Authority of India in line with the provisions of its agreement.
“Audit noticed that AAI has not taken any concrete steps for recovery of the revenue and safeguarding its own interests even when they had been highlighted by the independent auditor. This led to short receipt of 29.59 crore as revenue from MIAL and consequent loss of interest of 20.64 crore," it said.
AAI also acknowledged in the audit that it was not aware of the agreement between MIAL and Housing Development and Infrastructure Ltd (HDIL) despite the presence of representative of AAI on the board of MIAL. HDIL was asked to help with a slum encroachment project by MIAL.
In another case the audit found AAI’s failure in resolving the issue promptly resulted in non-realisation of revenue of 29.62 crore and loss of interest thereon to the extent of 13.86 crore from MIAL
In the third instance, AAI did not take the required action to protect its financial interest with MIAL and Delhi International Pvt Ltd (DIAL) which resulted in non realisation of share of 29.62 crore
by AAI in the revenue of MIAL and DIAL. AAI also sustained a loss of interest to the extent of 13.86 crore (till March 2015) on the unrealised amount, CAG said.
Both Delhi and Mumbai airports have a revenue share agreement as part of the 2006 privatisation agreement.
A MIAL spokesperson declined to comment.
“As per the Concession Agreement, Marketing Fund is towards promoting the Business of Concessionaires for carrying out various promotional activities. The collection and expenses under Marketing Fund is monitored by a separate Marketing Fund Committee comprising representatives from concessionaires. Hence, it is not revenue in the hands of DIAL as supported by Legal opinion," a DIAL spokesperson said by email.