Supreme Court rejects plea by Kerala against handing over operation of Thiruvananthapuram Airport to Adani

The Supreme Court on Monday rejected the plea filed by Kerala government challenging an October 2020 judgment of the Kerala High Court by which Adani Enterprises was allowed to operate, manage and develop the Thiruvananthapuram International Airport.

A bench of Chief Justice of India UU Lalit and Justice Bela M Trivedi also rejected the plea filed by Airport Authority Employees Union a(AAEU) and AAEU's president KP Suresh.

The Court said that in view of the fact the private entity has been managing the operations of the aiport since October 2021, there is no reason to interfere at this stage.

"Considering the fact that private entity has been in operation since October 2021, we see no reason to entertain the special leave petition. Thus, appeal dismissed," the Court ordered.

However, the Court clarified that the question regarding ownership of land on which the airport is situated, would remain open.

The plea filed by the State challenged the action of the Airports Authority of India to prefer Adani over the state government for management of the Thiruvananthapuram Airport.

The plea said that the decision was not in public interest and that the entire proceedings including tender process was vitiated by malafides and also in violation of the provisions of the Airports Authority of India Act, 1994.

It was contended that grant of concession to Adani was in violation of an earlier undertaking by the Union Ministry of Civil Aviation rejecting the proposal of the State government to form a Special Purpose Vehicle (SPV) to take over and run the Airport on a revenue-sharing basis. 

It was contended that granting concession to Adani, who has "no previous experience in managing airports", was violative of the provisions of the Airports Authority of India Act, 1994 as well as the proprietary rights of the State government as regards the land on which the Thiruvananthapuram Airport is situated.

The Kerala High Court had, in October 2020, rejected the challenge to the Central government's decision to lease out the Thiruvananthapuram Airport to Adani Enterprises.

This led to the present appeal before the top court.

Senior Advocate Chander Uday Singh appeared for the State government.

[Read order]