THE AIRPORTS AUTHORITY OF INDIA ACT, 1994 
_______ 

ARRANGEMENT OF SECTIONS 

Last updated: 9-9-2021 

CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title, commencement and application. 
2.  Definitions. 

CHAPTER II 
THE AIRPORTS AUTHORITY OF INDIA 

3.  Constitution and incorporation of the Authority. 
4.  Disqualification for office of member. 
5.  Term of office and conditions of service of members. 
6.  Vacation of office of member. 
7.  Eligibility of member for re-appointment. 
8.  Meetings. 
9.  Vacancies, etc., not to invalidate proceedings of the Authority. 
10.  Appointment of officers and other employees of the Authority.  
11.  Authority to act on business principles. 

CHAPTER III 
FUNCTIONS OF THE AUTHORITY 

12.  Functions of the Authority. 
12A. Lease by the Authority. 

CHAPTER IV 
PROPERTY AND CONTRACT 
13.  Undertakings of the International Airports Authority and the National Airports Authority to vest 

in the Authority. 

14.  General effect of vesting of undertaking in the Authority. 
15.  Licences, etc., to be deemed to have been granted to the Authority. 
16.  Tax exemption or benefit to continue to have effect. 
17.  Guarantee to be operative. 
18.  Provisions in respect of officers and other employees of the International Airports Authority and 

the National Airports Authority. 

19.  Compulsory acquisition of land for the Authority. 
20.  Contracts by the Authority. 
21.  Mode of executing contracts on behalf of the Authority. 

CHAPTER V 
FINANCE, ACCOUNTS AND AUDIT 

22.  Power of the Authority to charge, fees, rent, etc. 
22A. Power of Authority to levy development fees at airports. 

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SECTIONS 

23.  Additional capital and grant to the Authority by the Central Government. 
24.  Fund of the Authority and its investment. 
25.  Allocation of surplus funds. 
26.  Submission of programme of activities and financial estimates. 
27.  Borrowing powers of the Authority. 
28.  Accounts and audit. 

EVICTION OF UNAUTHORISED OCCUPANTS, ETC., OF AIRPORT PREMISES 

CHAPTER VA 

28A. Definitions. 
28B. Appointment of eviction officers. 
28C. Issue of notice to show cause against order of eviction. 
28D. Eviction of unauthorised occupants. 
28E. Disposal of property left on airport premises by unauthorised occupants. 
28F. Power to remove unauthorised constructions, etc. 
28G. Power to require payment of rent or damages in respect of airport premises. 
28H. Powers of eviction officers. 
28-I. [Omitted.] 
28J. [Omitted.] 
28JA. [Omitted.] 
28K. Appeals to Tribunal. 
28L. [Omitted.] 
28M. Finality of orders. 
28N. Offences under this Chapter. 
28-O. Offences by companies. 
28P. Congizance of offences. 
28Q. Power to obtain information. 
28R. Officers, etc., to aid and assist. 

CHAPTER VI 

MISCELLANEOUS 

29.  Submission of annual report. 
30.  Delegation. 
31.  Authentication of orders and other instruments of the Authority. 
32.  Officers and employees of the Authority to be public servants. 
33.  Protection of action taken in good faith. 
34.  Custody and disposal of lost property. 
35.  Provisions relating to income-tax. 
36.  Power of the Authority to undertake certain works. 
37.  Power to issue directions. 
38.  Power of the Central Government to temporarily divest the Authority of the management of any 

airport. 

39.  Power of the Central Government to supersede the Authority. 
40.  Power of the Central Government to issue directions. 
41.  Power to make rules. 
42.  Power to make regulations. 
43.  Rules and regulations to be laid before Parliament. 
44.  Power to remove difficulties. 
45.  [Repealed.] 
46.  Repeal and saving. 

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THE AIRPORTS AUTHORITY OF INDIA ACT, 1994 

  ACT NO. 55 OF 1994 

[12th September, 1994.] 

An Act to provide for the constitution of the Airports Authority of India and for the transfer and 
vesting of the undertakings of the International Airports Authority of India and the National 
Airports  Authority  to  and  in  the  Airports  Authority  of  India  so  constituted  for  the  better 
administration and cohesive management of airports and civil enclaves whereat air transport 
services  are operated or  are intended to  be operated and of  all aeronautical  communication 
stations 1[for the purposes of establishing or assisting in the establishment of airports] and for 
matters connected therewith or incidental thereto. 

BE it enacted by Parliament in the Forty-fifth Year of the Republic of India as follows:— 

CHAPTER I 

PRELIMINARY 

1. Short title, commencement and application.—(1) This Act may be called the Airports Authority 

of India Act, 1994. 

(2)  It  shall  come  into  force  on  such  date2  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint. 

(3) It applies to— 

(a)  all  airports  whereat  air  transport  services  are  operated  or  are intended to  be  operated,  other 

than airports and airfields belonging to, or subject to the control of, any armed force of the Union;  

3[(aa)  all  private  airports  insofar  as  it  relates  to providing  air  traffic  service, to issue  directions 

under section 37 to them and for the purposes of Chapter VA;] 

(b) all civil enclaves; 

(c) all aeronautical communication stations; and 

(d) all training stations, establishments and workshops relating to air transport services. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a)  “aeronautical  communication  station”  means  a  station  in  the  aeronautical  communication 
service which includes aeronautical practising service, aeronautical fixed service, aeronautical mobile 
service and aeronautical radio communication service; 

(b) “airport” means a landing and taking off area for aircrafts, usually with runways and aircraft 
maintenance and passenger facilities and includes aerodrome as defined in clause (2) of section 2 of 
the Aircraft Act, 1934 (22 of 1934); 

(c) “airstrip” means an area used or intended to be used for the landing and take-off of aircrafts 
with  short  take-off  and  landing  characteristics  and  includes  all  buildings  and  structures  thereon  or 
appertaining thereto; 

(d)  “air  traffic  service”  includes  flight  information  service,  alerting  service,  air  traffic  advisory 
service, air traffic control service, area control service, approach control service and airport control 
service; 

(e) “air transport service” means any service, for any kind of remuneration, whatsoever, for the 
transport by air of persons, mail or any other thing, animate or inanimate, whether such service relates 
to a single flight or series of flights; 

1. Ins. by Act of 43 of 2003, s. 2 (w.e.f. 1-7-2004). 
2.1st  April,  1995,  vide  notification  No.  S.O.  285(E),  dated  30th  March,  1995,  see  Gazette  of  India,  Extraordinary,  Part  II,               

sec. 3(ii). 

3. Ins. by Act 43 of 2003, s. 3 (w.e.f. 1-7-2004). 

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(f)  “appointed  day”  means  such  date  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint for the purposes of section 3; 

(g) “Authority” means the Airports Authority of India constituted under section 3; 

(h)  “Chairperson”  means  the  Chairperson  of  the  Authority  appointed  under  clause  (a)  of                   

sub-section (3) of section 3; 

(i) “civil enclave” means the area, if any, allotted at an airport belonging to any armed force of 
the  Union,  for  use  by  persons  availing  of  any  air  transport  services  from  such  airport  or  for  the 
handling  of  baggage  or  cargo  by  such  service,  and  includes  land  comprising  of  any  building  and 
structure on such area; 

(j) “heliport” means an area, either at ground level or elevated on a structure, used or intended to 
be used for the landing and take-off helicopters and includes any area for parking helicopters and all 
buildings and structures thereon or appertaining thereto; 

(k)  “International  Airports  Authority”  means  the  International  Airports  Authority  of  India 

constituted under section 3 of the International Airports Authority Act, 1971 (43 of 1971); 

(l)  “member”  means  a  member  of  the  Authority  and  includes  the  Chairperson,  but  does  not 
include, for the purposes of sections 4, 5, 6 and 7, an ex officio member referred to in clause (b) of        
sub-section (3) of section 3; 

(m)  “National  Airports  Authority”  means  the  National  Airports  Authority  constituted  under 

section 3 of the National Airports Authority Act, 1985 (64 of 1985); 

(n) “prescribed” means prescribed by rules made under this Act; 

 1[(nn) ‘private airport’ means an airport owned, developed or managed by— 

(i) any person or agency other than the Authority or any State Government, or 

(ii)  any  person  or  agency  jointly  with  the  Authority  or  any  State  Government  or  both 
where  the  share  of  such  person  or  agency,  as  the  case  may  be,  in  the  assets  of  the  private 
airport is more than fifty per cent.] 

(o) “regulations” means regulations made under this Act.  

CHAPTER II 

THE AIRPORTS AUTHORITY OF INDIA 

3. Constitution and incorporation of the Authority.—(1) With effect from the appointed day, the 
Central Government shall, by notification in the Official Gazette, constitute an Authority to be called the 
Airports Authority of India. 

(2) The Authority shall be a body corporate by the name aforesaid having perpetual succession and a 
common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property 
both movable and immovable, and to contract and shall by the said name sue and be sued. 

(3) The Authority shall consist of—  

(a) a Chairperson to be appointed by the Central Government;  

(b) the Director General of Civil Aviation, or an officer not below the rank of the Deputy Director 

General of Civil Aviation, to be appointed by the Central Government, ex officio; 

(c)  not  less  than  eight  and  not  more  than  fourteen  members  to  be  appointed  by  the  Central 

Government. 

(4)  The  Chairperson  shall  be  a  whole-time  member  and  other  members  referred  to  in  clause  (c)  of 
sub-section (3) may be appointed as whole-time or part-time  members as the Central Government may 
think fit. 

1. Ins. by Act of 43 of 2003, s. 4 (w.e.f. 1-7-2004). 

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(5) The Chairperson and the members referred to in clause (c) of sub-section (3) shall be chosen from 
among  persons  who  have  special  knowledge  and  experience  in  air  transport  of  any  other  transport 
services,  industry,  commercial  or  financial  matters  or  administration  and  from  among  persons  who  are 
capable of representing organisations of workers and consumers.  

4. Disqualification for office of member.—A person shall be disqualified for being appointed as a 

member if he— 

(a) has been convicted and sentenced to imprisonment for an offence, which, in the opinion of the 

Central Government, involves moral turpitude; or 

(b) is an undischarged insolvent; or 

(c) is of unsound mind and stands so declared by a competent court; or 

(d)  has  been  removed  or  dismissed  from  the  service  of  the  Government  or  a  body  corporate 

owned or controlled by the Government; or 

(e) has in the opinion of the Central Government such financial or other interest in the Authority 

as is likely to affect prejudicially the discharge by him of his functions as a member.  

5.  Term  of  office  and  conditions  of  service  of  members.—(1)  Subject  to  the  provisions  of              

section 6,— 

(i) every whole-time member (other than the ex officio member) shall hold office for a period of 
five years from the date on which he assumes office or till he attains the age of sixty years, whichever 
is earlier, and 

(ii) every part-time  member (other than the ex  officio member) shall hold office for a period of 

three years from the date on which he assumes office: 

Provided that the Central Government may— 

(a)  terminate  the  appointment  of  any  whole-time  member,  who  is  not  a  servant  of  the 
Government, after giving him notice for a period of not less than three months or, in lieu thereof, on 
payment of an amount equal to his salary and allowances, if any, for a period of three months; 

(b) terminate the appointment of any part-time member who is not a servant of the Government 

after giving him notice for such period as may be prescribed; and 

(c) terminate at any time the appointment of any member who is a servant of the Government. 

(2) The other conditions of service of the members shall be such as may be prescribed. 

(3)  Any  member  may  resign  his  office  by  giving  notice  in  writing  for  such  period  as  may  be 
prescribed, to the Central Government and, on such resignation being notified in the Official Gazette by 
the Government, such member shall be deemed to have vacated his office.  

 6. Vacation of office of member.—The Central Government shall remove a member if he— 

(a) becomes subject to any of the disqualifications mentioned in section 4: 

Provided  that  no  member  shall  be  removed  on  the  ground  that  he  has  become  subject  to  the 
disqualification  mentioned  in  clause  (e)  of  that  section,  unless  he  has  been  given  a  reasonable 
opportunity of being heard in the matter; or 

(b) refuses to act or becomes incapable of acting; or 

(c)  is,  without  obtaining  leave  of  absence  from  the  Authority,  absent  from  three  consecutive 

meetings of the Authority; or  

(d)  in  the  opinion  of  the  Central  Government,  has  so  abused  his  position  as  to  render  his 

continuance in office detrimental to the public interest: 

Provided  that  no  member  shall  be  removed  under  this  clause  unless  he  has  been  given  a 

reasonable opportunity of being heard in the matter. 

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7.  Eligibility  of  member  for  re-appointment.—Any  person  ceasing  to  be  a  member  shall,  unless 

disqualified under section 4, be eligible for re-appointment.  

8. Meetings.—(1) The Authority shall meet at such times and places, and shall observe such rules of 
procedure  in  regard  to  the  transaction  of  the  business  at  its  meetings  (including  the  quorum  at  such 
meetings) as may be provided by regulations. 

(2) The Chairperson, or, if for any reason he is unable to attend any meeting of the Authority, any 

other member chosen by the members present at the meeting shall preside at the meeting. 

(3) All questions which come up before any meeting of the Authority shall be decided by a majority 
of the votes of the members present and voting, and, in the event of an equality of votes, the Chairperson, 
or in his absence, the person presiding, shall have and exercise a second or casting vote.  

9.  Vacancies,  etc.,  not to invalidate  proceedings  of  the  Authority.—No  act  or  proceeding  of  the 

Authority shall be invalid merely by reason of— 

(a) any vacancy in, or any defect in the constitution of, the Authority; or 

(b) any defect in the appointment of a person acting as a member of the Authority; or 

(c) any irregularity in the procedure of the Authority not affecting the merits of the case. 

10.  Appointment  of  officers  and  other  employees  of  the  Authority.—(1)  For  the  purpose  of 
enabling  it  efficiently  to  discharge  its  functions  under  this  Act,  the  Authority  shall,  subject  to  the 
provisions of section 18 and to such rules as may be made in this behalf, appoint (whether on deputation 
or otherwise) such number of officers and other employees as it may consider necessary:  

Provided  that  the  appointment  of  such  category  of  officers,  as  may  be  specified  after  consultation 

with the Chairperson in such rules, shall be subject to the approval of the Central Government. 

(2)  Subject  to  the  provisions  of  section  18,  every  officer  or  other  employee  appointed  by  the 
Authority shall be subject to such conditions of service and shall be entitled to such remuneration as may 
be determined by regulations. 

11. Authority to act on business principles.—In the discharge of its functions under this Act, the 

Authority shall act, so far as may be, on business principles. 

CHAPTER III 

FUNCTIONS OF THE AUTHORITY 

12. Functions of the Authority.—(1) Subject to the rules, if any, made by the Central Government in 
this  behalf,  it  shall  be  the  function  of  the  Authority  to  manage  the  airports,  the  civil  enclaves  and  the 
aeronautical communication stations efficiently. 

(2) It shall be the duty of the Authority to provide air traffic service and air transport service at any 

airport and civil enclaves. 

(3)  Without  prejudice  to  the  generality  of  the  provisions  contained  in  sub-sections  (1)  and  (2),  the 

Authority may— 

(a) plan, develop, construct and maintain runways, taxiways, aprons and terminals and ancillary 

buildings at the airports and civil enclaves;  

1[(aa)  establish  airports,  or  assist  in  the  establishment  of  private  airports,  by  rendering  such 
technical,  financial  or  other  assistance  which  the  Central  Government  may  consider  necessary  for 
such purpose;] 

(b) plan, procure, instal and maintain navigational aids, communication equipment, beacons and 
ground aids at the airports and at such locations as may be considered necessary for safe navigation 
and operation of aircrafts; 

(c)  provide  air  safety  services  and  search  and  rescue,  facilities  in  co-ordination  with  other 

agencies; 

1. Ins. by Act of 43 of 2003, s. 5 (w.e.f. 1-7-2004). 

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(d)  establish  schools  or  institutions  or  centres  for  the  training  of  its  officers  and  employees  in 

regard to any matter connected with the purposes of this Act; 
(e) construct residential buildings for its employees; 
(f) establish and maintain hotels, restaurants and restrooms at or near the airports; 
(g)  establish  warehouses  and  cargo  complexes  at  the  airports  for  the  storage  or  processing  of 

goods; 

(h)  arrange  for  postal,  money  exchange,  insurance  and  telephone  facilities  for  the  use  of 

passengers and other persons at the airports and civil enclaves; 

(i) make appropriate arrangements for watch and ward at the airports and civil enclaves; 
(j) regulate and control the plying of vehicles, and the entry and exit of passengers and visitors, in 
the  airports  and  civil  enclaves  with  due  regard  to  the  security  and  protocol  functions  of  the 
Government of India; 

(k)  develop  and  provide  consultancy,  construction  or  management  services,  and  undertake 
operations in India and abroad in relation to airports, air-navigation services, ground aids and safety 
services or any facilities thereat; 

(l) establish and manage heliports and airstrips; 

(m)  provide  such  transport  facility  as  are,  in  the  opinion  of  the  Authority,  necessary  to  the 

passengers travelling by air; 

(n) form one or more companies under the Companies Act, 1956 (1 of 1956) or under any other 
law relating to companies to further the efficient discharge of the functions imposed on it by this Act; 

(o) take all such steps as may be necessary or convenient for, or may be incidental to, the exercise 

of any power or the discharge of any function conferred or imposed on it by this Act; 

(p) perform any other function considered necessary or desirable by the Central Government for 

ensuring the safe and efficient operation of aircraft to, from and across the air space of India; 

(q) establish training institutes and workshops; 

(r) any other activity at the airports and the civil enclaves in the best commercial interests of the 
Authority  including  cargo  handling,  setting  up  of  joint  ventures  for  the  discharge  of  any  function 
assigned to the Authority. 

(4)  In  the  discharge  of  its  functions  under  this  section,  the  Authority  shall  have  due  regard  to  the 

development of air transport service and to the efficiency, economy and safety of such service. 

(5) Nothing contained in this section shall be construed as— 

(a) authorising the disregard by the Authority of any law for the time being in force; or 

(b) authorising any person to institute any proceeding in respect of duty or liability to which the 

Authority or its officers or other employees would not otherwise be subject.  

1[12A. Lease by the Authority.—(1) Notwithstanding anything contained in this Act, the Authority 
may, in the public interest or in the interest of better management of airports, make a lease of the premises 
of an airport (including buildings and structures thereon and appertaining thereto) to carry out some of its 
functions under section 12 as the Authority may deem fit: 

Provided that such lease shall not affect the functions of the Authority under section 12 which relates 

to air traffic service or watch and ward at airports and civil enclaves. 

(2)  No  lease  under  sub-section  (1)  shall  be  made  without  the  previous  approval  of  the  Central 

Government. 

(3)  Any  money,  payable  by  the lessee  in  terms  of  the  lease  made  under  sub-section (1),  shall form 
part  of  the  fund  of  the  Authority  and  shall  be  credited  thereto  as  if  such  money  is  the  receipt  of  the 
Authority for all purposes of section 24. 

1. Ins. by Act of 43 of 2003, s. 6 (w.e.f. 1-7-2004). 

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(4) The lessee, who has been assigned any function of the Authority under sub-section (1) shall have 

all the powers of the Authority necessary for the performance of such function in terms of the lease.] 

CHAPTER IV 

PROPERTY AND CONTRACT 

13. Undertakings of the International Airports Authority and the National Airports Authority 
to vest in the Authority.—(1) On and from the appointed day, there shall be transferred to, and vest in, 
the Authority constituted under section 3, the undertakings of the International Airports Authority and the 
National Airports Authority. 

(2) The undertaking of the International Airports Authority or the National Airports Authority which 
is transferred to, and which vests in, the Authority under sub-section (1) shall be deemed to include all 
assets,  rights,  powers,  authorities  and  privileges  and  all  property  movable  and  immovable,  real  or 
personal,  corporeal  or  incorporeal,  present  or  contingent,  of  whatever  nature  and  wheresoever  situate, 
including  lands,  buildings,  machinery,  equipments,  works,  workshops,  cash  balances,  capital,  reserves, 
reserve funds, investments, tenancies, leases and book debts and all other rights and interests arising out 
of such property as were immediately before the appointed day in the ownership, possession or power of 
the International Airports Authority, or as the case may be, the National Airports Authority, in relation to 
its undertaking, whether within or outside India, all books of account and documents relating thereto and 
shall also be deemed to include all borrowings, liabilities and obligations of whatever kind then subsisting 
of the International Airports Authority, or as the case may be, the National Airports Authority in relation 
to its undertaking. 

14. General effect of vesting of undertaking in the Authority.—(1) All contracts, agreements and 
working  arrangements  subsisting  immediately  before  the  appointed  day  and  affecting  the  International 
Airports Authority, or as the case may be, the National Airports Authority shall, in so far as they relate to 
the International Airports Authority, or as the case may be, the National Airports Authority, cease to have 
effect or be enforceable against the International Airports Authority, or as the case may be, the National 
Airports Authority and shall be of as full force and effect against or in favour of the Authority in which 
the undertakings have vested by virtue of this Act and enforceable as fully and effectually as if, instead of 
the International Airports Authority, or as the case may be, the National Airports Authority, the Authority 
had been named therein or had been a party thereto. 

(2) Any proceeding, suit or cause of action pending or existing immediately before the appointed day 
by  or  against  the  International  Airports  Authority  or  the  National  Airports  Authority  in  relation  to  its 
undertakings may, as from that day, be continued and enforced by or against the Authority in which it has 
vested  by  virtue  of  this  Act,  as  it  might  have  been  enforced  by  or  against  the  International  Airports 
Authority  or  the  National  Airports  Authority    if  this  Act  had  not  been  passed,  and  shall  cease  to  be 
enforceable  by  or  against  the  International  Airports  Authority,  or  as  the  case  may  be,  the  National 
Airports Authority. 

15.  Licences,  etc.,  to  be  deemed  to  have  been  granted  to  the  Authority.—With  effect  from  the 
appointed  day,  all  licences,  permits,  quotas  and  exemptions,  granted  to  the  International  Airports 
Authority  or  the  National  Airports  Authority  in  connection  with  the  affairs  and  business  of  the 
International Airports Authority, or as the case may be, the National Airports Authority, under any law 
for  the  time  being  in  force,  shall  be  deemed  to  have  been  granted  to  the  Authority  in  which  the 
undertakings of the International Airports Authority and the National Airports Authority have vested by 
virtue of this Act. 

16. Tax exemption or benefit to continue to have effect.—(1) Where any exemption from, or any 
assessment with respect to, any tax has been granted or made or any benefit by way of set off or carry 
forward, as the case may be, of any unabsorbed depreciation or investment allowance or other  allowance  

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or loss has been extended or is available to the International Airports Authority or the National Airports 
Authority,  under  the  Income-tax  Act,  1961  (43  of  1961),  such  exemption,  assessment  or  benefit  shall 
continue to have effect in relation to the Authority in which the undertakings of the International Airports 
Authority and the National Airports Authority have vested by virtue of this Act. 

(2)  Where  any  payment  made  by  the  International  Airports  Authority  or  the  National  Airports 
Authority is exempt from deduction of the tax at source under any provision of the Income-tax Act, 1961 
(43  of  1961),  the  exemption  from  tax  will  continue  to  be  available  as  if  the  provisions  of  the  said  Act 
made applicable to the International Airports Authority or the National Airports Authority were operative 
in  relation  to  the  Authority  in  which  the  undertakings  of  the  International  Airports  Authority  and  the 
National Airports Authority have vested by virtue of this Act. 

(3) The transfer and vesting of the undertakings or any part thereof in terms of section 13 shall not be  
construed as a transfer within the meaning of the Income-tax Act, 1961 (43 of 1961) for the purposes of 
capital gains.  

17. Guarantee to be operative.—Any guarantee given for or in favour of the International Airports 
Authority or the National Airports Authority with respect to any loan or lease finance shall continue to be 
operative  in  relation  to  the  Authority  in  which  the  undertakings  of  the  International  Airports  Authority 
and the National Airports Authority have vested by virtue of this Act. 

18. Provisions in respect of officers and other employees of the International Airports Authority 
and  the  National  Airports  Authority.—(1)  (a)  Every  officer  or  other  employee  of  the  International 
Airports  Authority  serving  in  its  employment  immediately  before  the  appointed  day  shall,  in  so  far  as 
such officer or other employee is employed in connection with the undertaking which has vested in the 
Authority by virtue of this Act, becomes, as from the appointed day, an officer or, as the case may be, 
other employee of the International Airports Division of the Authority. 

(b)  Every  officer  or  other  employee  of  the  National  Airports  Authority  serving  in  its  employment 
immediately before the appointed day shall, in so far as such officer or other employee is employed in 
connection with the undertaking which has vested in the Authority by virtue of this Act, becomes, as from 
the appointed day, an officer or, as the case may be, other employee of the National Airports Division of 
the Authority. 

(2) Every officer or other employee of the International Airports Authority or the National Airports 
Authority who becomes an officer or, as the case may be, other employee of the Authority, as referred to 
in sub-section (1), shall hold his office or service therein by the same tenure, at the same remuneration, 
upon the same terms and conditions, with the same obligations and with the same rights and privileges as 
to  leave,  passage,  insurance,  superannuation  scheme,  provident  fund,  other  funds,  retirement,  pension, 
gratuity  and  other  benefits  as  he  would  have  held  under  the  International  Airports  Authority  or,  as  the 
case may be, the National Airports Authority if its undertaking had not vested in the Authority and shall 
continue to do so as an officer or other employee, as the case may be, of the Authority or until the expiry 
of a period of one year from the appointed day if such officer or other employee opts not to be the officer 
or other employee of the Authority within such period: 

Provided that if the Authority thinks it expedient to extend the period so fixed, it may extend the same 

up to a maximum period of one year. 

(3)  Where  an  officer  or  other  employee  of  the  International  Airports  Authority  or  the  National 
Airports Authority opts under sub-section (2) not to be in the employment or service of the Authority in 
which the undertakings of the International Airports Authority and the National Airports Authority have 
vested, such officer or other employee shall be deemed to have resigned from the respective cadre. 

(4) Notwithstanding anything contained in the Industrial Disputes Act, 1947  (14 of 1947) or in any 
other law for the time being in force, the transfer of the services of any officer or other employee of the 
International Airports Authority or the National Airports Authority to the Authority shall not entitle such 
officer or other employee to any compensation under this Act or under any other law for the time being in 
force and no such claim shall be entertained by any court, tribunal or other authority. 

(5) The officers and other employees who have retired before the appointed day from the service of 
the  International  Airports Authority  or the  National Airports  Authority  and  are  entitled  to  any  benefits, 
9 

 
rights or privileges shall be entitled to receive the same benefits, rights or privileges from the Authority in 
which the undertakings of the International Airports Authority and the National Airports Authority have 
vested. 

(6)  The  trusts  of  the  Provident  Fund  and  Group  Insurance  and  Superannuation  Scheme  of  the 
International Airports Authority or the National Airports Authority and any other bodies created for the 
welfare  of  officers  or  employees  would  continue  to  discharge  their  functions  in  the  Authority  as  was 
being  done  hitherto  in  the  International  Airports  Authority  or  the  National  Airports  Authority  and  tax 
exemption granted to Provident Fund or Group Insurance and Superannuation Scheme would continue to 
be applied to the Authority. 

(7)  After  the  expiry  of  the  period  of  one  year,  or  the  extended  period,  as  referred  to  in                                   

sub-section (2), all the officers and other employees transferred and appointed to the Authority, other than 
those opting not to be the officers or employees of the Authority within such period, shall be governed by 
the rules and regulations made by the Authority in respect of the service conditions of the officers and 
other employees of the said Authority. 

19. Compulsory acquisition of land for the Authority.—Any land required by the Authority for the 
discharge of its functions under this Act shall be deemed to be needed for a public purpose and such land 
may be acquired for the Authority under the provisions of the Land Acquisition Act, 1894 (1 of 1894) or 
of any other corresponding law for the time being in force.  

20.  Contracts  by  the  Authority.—Subject  to  the  provisions  of  section  21,  the  Authority  shall  be 
competent to enter into and perform any contract necessary for the discharge of its functions under this 
Act.  

21. Mode of executing contracts on behalf of the Authority.—(1) Every contract shall, on behalf of 
the Authority, be made by the Chairperson or such other member or such officer of the Authority as may 
be  generally  or  specially  empowered  in  this  behalf  by  the  Authority  and  such  contracts  or  class  of 
contracts as may be specified in the regulations shall be sealed with the common seal of the Authority: 

Provided that no contract exceeding such value or amount as the Central Government may, from time 
to time, by order, fix in this behalf shall be made unless it has been previously approved by the Authority: 

Provided further that no contract for the acquisition or sale of immovable property or for the lease of 
any such property for a term exceeding thirty years and no other contract exceeding such value or amount 
as the Central Government may, from time to time, by order, fix in this behalf shall be made unless it has 
been previously approved by the Central Government. 

(2) Subject to the provisions of sub-section (1), the form and manner in which any contract shall be 

made under this Act shall be such as may be specified by regulations. 

(3) No contract which is not in accordance with the provisions of this Act and the regulations shall be 

binding on the Authority.  

CHAPTER V 

FINANCE, ACCOUNTS AND AUDIT 

22. Power of the Authority to charges fees, rent, etc.—The Authority may,— 

(i) with the previous approval of the Central Government, charge fees or rent—  

(a) for the landing, housing or parking of aircraft or for any other service or facility offered in 

connection with aircraft operations at any airport, heliport or airstrip. 

Explanation.—In  this  sub-clause  “aircraft”  does  not  include  an  aircraft  belonging  to  any 
armed  force  of  the  Union  and  “aircraft  operations”  does  not  include  operations  of  any  aircraft 
belonging to the said force; 

(b) for providing air traffic services, ground safety services, aeronautical communications and 
navigational  aids  and  meteorological  services  at  any  airport  and  at  any  aeronautical 
communication station; 

10 

 
(c) for the amenities given to the passengers and visitors at any airport, civil enclave, heliport 

or airstrip; 

(d)  for  the  use  and  employment  by  persons  of  facilities  and  other  services  provided  by  the 

Authority at any airport, civil enclave, heliport or airstrip; 

(ii)  with due regard to the instructions that the  Central  Government  may  give  to  the  Authority, 
from time to time, charge fees or rent from persons who are given by the  Authority any facility for 
carrying on any trade or business at any airport, heliport or airstrip. 

1[22A. Power of Authority to levy development fees at airports.—2[The Authority may,— 

 (i)  after  the  previous  approval  of  the  Central  Government  in  this  behalf,  levy  on,  and  collect 
from,  the  embarking  passengers  at  an  airport  other  than  major  airports  referred  to  in  clause  (h)  of 
section  2  of  the  Airports  Economic  Regulatory  Authority  of  India  Act,  2008  (27  of  2008)  the 
development fees at the rate as may be prescribed; 

(ii) levy, on, and collect from, the embarking passengers at major airport referred to in clause (h) 
of  section  2  of  the  Airports  Economic  Regulatory  Authority  of  India  Act,  2008  (27  of  2008)  the 
development  fees  at  the  rate  as  may  be  determined  under  clause  (b)  of  sub-section  (1)  of            
section 13 of the Airports Economic Regulatory Authority of India Act, 2008,  

and  such  fees  shall  be  credited  to  the  Authority  and  shall  be  regulated  and  utilised  in  the  prescribed 
manner, for the purposes of—] 

(a)  funding  or  financing  the  costs  of  upgradation,  expansion  or  development  of  the  airport  at 

which the fee is collected; or 

(b)  establishment  or  development  of  a  new  airport  in  lieu  of  the  airport  referred  to  in                  

clause (a); or  

(c) investment in the equity in respect of shares to be subscribed by the Authority in companies 
engaged in establishing, owning, developing, operating or maintaining a private airport in lieu of the 
airport referred to in clause (a) or advancement of loans to such companies or other persons engaged 
in such activities.] 

23.  Additional  capital  and  grant  to  the  Authority  by  the  Central  Government.—The  Central 

Government may, after due appropriation made by Parliament, by law in this behalf,— 

(a) provide any capital that may be  required by the Authority for the discharge of its functions 
under  this  Act  or  for  any  purpose  connected  therewith  on  such  terms  and  conditions  as  that 
Government may determine; 

(b) pay to the Authority, on such terms and conditions as the Central Government may determine, 
by way of loans or grants such sums of money as that Government may consider necessary for the 
efficient discharge by the Authority of its functions under this Act. 

24. Fund of the Authority and its investment.—(1) The Authority shall have its own fund and all 

receipts  of  the  Authority  shall  be  credited  thereto  and  all  payments  of  the  Authority  shall  be  made               
therefrom. 

(2) The  Authority  shall  have  power,  subject  to  the  provisions  of  this  Act,  to  spend  such sums  as it 
thinks fit to cover all administrative expenses of the Authority and on objects or for purposes authorised 
by this Act and such sums shall be treated as expenditure out of the fund of the Authority.  

(3)  All  moneys  standing  at  the  credit  of  the  Authority  which  cannot  immediately  be  applied  as 

provided in sub-section (2), shall be— 

(a)  deposited  in  the  State  Bank  of  India  or  any  such  Scheduled  bank  or  banks  or  other  public 
financial institutions subject to such conditions as may, from time to time, be specified by the Central 
Government; and  

1. Ins. by Act of 43 of 2003, s.7 (w.e.f. 1-7-2004). 
2. Subs. by Act of 27 of 2008, s. 54 and the Schedule, for certain words (w.e.f. 30-11-2008). 

11 

 
                                                           
(b) invested in the securities of the Central Government or in such manner as may be prescribed. 

Explanation—In  this  sub-section,  “Scheduled  bank”  has  the  same  meaning  as  in  clause  (e)  of             

section of the Reserve Bank of India Act, 1934 (2 of 1934). 

25. Allocation of surplus funds.—(1) The Authority may, from time to time, set apart such amounts 
as it  thinks fit as  a reserve  fund  or funds for  the purpose  of  expanding  existing  facilities  or  services  or 
creating new facilities or services at any airport, civil enclave, heliport or airstrip or for the purpose of 
providing against any temporary decrease of revenue or increase of expenditure from transient causes or 
for purposes of replacement or for meeting expenditure arising from loss or damage from fire, cyclone, 
air-crash  or  other  accident  or  for  meeting  any  liability  arising  out  of  any  act  or  commission  in  the 
discharge of its functions under this Act: 

Provided that without prejudice to the right of the Authority to establish specific reserves for one or 

more specific purposes, the Authority shall also have the power to establish a general reserve:  

Provided further that the sums set apart annually in respect of each or any of the specific and general 
reserves and the aggregate at any time of such sums  shall not exceed such limits as may, from time to 
time, be fixed in that behalf by the Central Government. 

(2)  After  making  provision  for  such  reserve  fund  or  funds  and  for  bad  and  doubtful  debts, 
depreciation in assets and all other matters which are usually provided for by companies registered and 
incorporated under the Companies Act, 1956 (1 of 1956) the Authority shall pay the balance of its annual 
net profits to the Central Government. 

26.  Submission  of  programme  of  activities  and  financial  estimates.—(1)  The  Authority  shall, 
before the commencement of each financial year, prepare a statement of the programme of its activities 
during the forthcoming financial year as well as financial estimate in respect thereof. 

(2)  The  statement  prepared  under  sub-section  (1)  shall,  not  less  than  three  months  before  the 

commencement of each financial year, be submitted for approval to the Central Government. 

(3) The statement and the financial estimates of the Authority may, with the approval of the Central 

Government, be revised by the Authority. 

27. Borrowing powers of the Authority.—(1) The Authority may, with the consent of the Central 
Government or in accordance with the terms of any general or special authority given to it by the Central 
Government, borrow money from any source by the issue of bonds, debentures or such other instruments 
as it may deem fit for discharging all or any of its functions under this Act. 

(2)  The  Central  Government  may  guarantee  in  such  manner  as  it  thinks  fit,  the  repayment  of  the 
principal and the payment of interest thereon with respect to the loans borrowed by the Authority under 
sub-section (1). 

(3) Subject to such limits as the Central Government may, from time to time, lay down, the Authority 
may borrow temporarily by way of overdraft or otherwise such amounts as it may require for discharging 
its functions under this Act. 

28.  Accounts  and  audit.—(1)  The  Authority  shall  maintain  proper  accounts  and  other  relevant 
records  and  prepare  an  annual  statement  of  accounts  including  the  profit  and  loss  account  and  the    
balance-sheet  in  such  form  as  may  be  prescribed  by  the  Central  Government  in  consultation  with  the 
Comptroller and Auditor-General of India. 

(2) The accounts of the Authority shall be audited annually by the Comptroller and Auditor-General 
of  India  and  any  expenditure  incurred  by  him  in  connection  with  such  audit  shall  be  payable  by  the 
Authority to the Comptroller and Auditor-General of India. 

(3)  The  Comptroller  and  Auditor-General  of  India  and  any  person  appointed  by  him  in  connection 
with the audit of the accounts of the Authority shall have the same rights and privileges and authority in 
connection with such audit as the Comptroller and Auditor-General has in connection with the audit of 
Government accounts and, in particular, shall have the right to demand the production of books, accounts, 
connected vouchers, documents and papers and inspect any of the offices of the Authority.  

12 

 
(4) The accounts of the Authority as certified by the Comptroller and Auditor-General of India or any 
other  person  appointed  by  him  in  this  behalf  together  with  the  audit  report  thereon  shall  be  forwarded 
annually  to  the  Central  Government  and  that  Government  shall  cause  the  same  to  be  laid  before  both 
Houses of Parliament. 

EVICTION OF UNAUTHORISED OCCUPANTS, ETC., OF AIRPORT PREMISES 

28A. Definitions.—In this Chapter, unless the context otherwise requires,— 

1[CHAPTER VA 

(a) “airport premises” means any premises— 

(i) belonging to airport; 

(ii) taken on lease for the purposes of airport; 

(iii)  acquired  for  the  Authority  under  the  provisions  of  the  Land  Acquisition  Act,              

1894 (1 of 1894) or any other corresponding law for the time being in force. 

Explanation.—For the  removal  of  doubts,  it is  hereby  declared  that for  the purposes  of  this  clause, 

“airport” includes private airport; 

(b) “eviction officer” means an officer of the Authority appointed as such by it under section 28B; 

(c) “premises” means any land or building or part of a building, and includes— 

(i)  the  garden,  grounds  and  outhouses,  if  any,  appertaining  to  such  building  or  part  of  a 

building; and 

(ii) any fittings affixed to such building or part of a building for more beneficial enjoyment 

thereof; 

(d)  “rent”, in relation to  any  airport  premises,  means  the  consideration  payable periodically  for 

the authorised occupation of the premises, and includes—  

(i) any charge for electricity, water or any other service in connection with the occupation of 

the premises; and 

(ii) any tax, by whatever name called, payable in respect of the premises; 

2* 

* 

* 

* 

* 

(f) “unauthorised  occupation”, in relation to any airport premises, means the occupation by any 
person of the airport premises without authority for such occupation and includes the continuance in 
occupation by any person of the airport premises after the authority (whether by way of grant or any 
other mode of transfer) under which he was allowed to occupy the premises has expired or has been 
determined for any reason whatsoever. 

28B. Appointment of eviction officers.—The Authority may, by general or special order in writing, 
appoint such number of its officers, as it thinks fit, to be eviction officers for the purposes of this Chapter, 
and  define  the  local  limits  within  which,  or  the  categories  of  airport  premises  in  respect  of  which,  the 
eviction officers shall exercise the powers conferred and perform the duties imposed, on eviction officers 
by or under this Chapter. 

 28C. Issue of notice to show cause against order of eviction.—(1) If the eviction officer is of the 
opinion that any persons are in unauthorised occupation of any airport premises and that they should be 
evicted,  the  eviction  officer  shall,  in  the  manner  hereinafter  provided,  issue  a  notice  in  writing  calling 
upon all persons concerned to show cause why an order of eviction should not be made. 

(2) The notice shall— 

(a) specify the grounds on which the order of eviction is proposed to be made; and 

1. Ins. by Act of 43 of 2003, s. 8 (w.e.f. 1-7-2004). 
2. Clause (e) omitted by Act 33 of 2021, s. 19 (w.e.f. 4-4-2021). 

13 

 
 
 
 
 
                                                           
(b) require all persons concerned, that is to say, all persons who are or may be, in occupation of, 

or claim interest in, the airport premises—  

(i) to show cause, if any, against the proposed order on or before such date as is specified in 

the notice, being a date not earlier than seven days from the date of issue thereof, and 

(ii)  to  appear  before  the  eviction  officer  on  the  date  specified  in  the  notice  along  with  the 
evidence  which  they  intend  to  produce  in  support  of  the  cause  shown  and  also  for  personal 
hearing, if such hearing is desired. 

(3) The eviction officer shall cause the notice to be served by having it affixed on the outer door or 
some  other  conspicuous  part  of  the  airport  premises  and  in  such  other  manner  as  may  be  prescribed, 
whereupon  the notice shall be deemed to have been duly given to the persons concerned. 

(4) Where the eviction officer knows or has reasons to believe that any person is in occupation of the 
airport premises, then, without prejudice to the provisions of sub-section (3), he shall cause a copy of the 
notice to be served on every such person by post or by delivering or tendering it to that person or in such 
other manner as may be prescribed. 

28D. Eviction of unauthorised occupants.—(1) If, after considering the cause, if any, shown by any 
person in pursuance of a notice under section 28C and any evidence produced by him in support of the 
same  and  after  personal  hearing, 
sub-section (2) of section 28C, the eviction officer is satisfied that the airport premises are in unauthorised 
occupation,  the  eviction  officer  may  make  an  order  of  eviction,  for  reasons  to  be  recorded  therein, 
directing that the airport premises shall be vacated, on such date as may be specified in the order, by the 
persons who may be in occupation thereof, and cause a copy of the order to be affixed on the outer door 
or some other conspicuous part of the airport premises. 

if  any,  given  under  sub-clause 

(ii)  of  clause 

(b)  of                                           

(2) If any person refuses or fails to comply with the order of eviction on or before the date specified 
in the order or within fifteen days of the date of publication under sub-section (1), whichever is earlier, 
the eviction officer or any other officer duly authorised by the eviction officer in this behalf may, after the 
date so specified or after the expiry of the period aforesaid, whichever is earlier, evict that person from, 
and  take  possession  of,  the  airport  premises  and  may,  for  that  purpose,  use  such  force  as  may  be 
necessary. 

28E. Disposal of property left on airport premises by unauthorised occupants.—(1) Where any 
persons have been evicted from any airport premises under section 28D, the eviction officer may, after 
giving ten days’ notice to the persons from whom possession of the airport premises has been taken and 
after publishing the notice in at least one newspaper having circulation in the locality, remove or cause to 
be removed or  dispose of by public auction any property remaining on such premises. 

(2) Where any property is sold under sub-section (1), the sale proceeds thereof shall, after deducting 
the expenses of the sale and the amount, if any, due to the Central Government or the corporate authority 
on account of arrears of rent or damages or costs, be paid to such person or persons as may appear to the 
eviction officer to be entitled to the same: 

Provided that where the eviction officer is unable to decide as to the person or persons to whom the 
balance of the amount is payable or as to the apportionment of the same, he may refer such dispute to the 
1[Central Government]and the decision of the 1[Central Government] thereon shall be final. 
28F. Power to remove unauthorised constructions, etc.—(1) No person shall— 

(a) erect or place or raise any building or any movable or immovable structure or fixture; 

(b) display or spread any goods; 

(c) bring or keep any cattle or other animal,  

on or against or in front of any airport premises except in accordance with the authority (whether by way 
of grant or any other mode of transfer) under which he was allowed to occupy such airport premises. 

1. Subs. by Act 33 of 2021, s. 19, for “Tribunal” (w.e.f. 4-4-2021). 
14 

 
                                                           
(2) Where any building or other immovable structure or fixture has been erected, placed or raised in 
any airport premises in contravention of the provisions of sub-section (1), the eviction officer may serve 
on the person erecting such building or other structure or fixture, a notice requiring him either to remove 
or show cause why he shall not remove such building or other structure or fixture to or from the airport 
premises  within  such  period,  not  being  less  than  seven  days  but  not  exceeding  thirty  days  as  may  be 
specified in the notice, and on the omission or refusal of such person to show cause, or to remove such 
building or other structure or fixture from the airport  premises, or where the cause shown is not, in the 
opinion  of  the  eviction  officer,  sufficient,  the  eviction  officer  may,  by  order,  remove  or  cause  to  be 
removed the building or other structure or fixture from the airport premises and the cost of such removal 
shall be recoverable from such person as an arrear of land revenue. 

(3) Where any movable structure or fixture has been erected, placed or raised, or any goods have been 
displayed  or  spread  or  any  cattle  or  other  animal  has  been  brought  or  kept  on  any  airport  premises  in 
contravention  of  the  provisions  of  sub-section  (1)  by  any  person,  the  eviction  officer  may,  by  order, 
remove or cause to be removed without notice, such structure, fixture, goods, cattle or other animal, as the 
case  may  be,  from  the  airport  premises  and  the  cost  of  such  removal  shall  be  recoverable  from  such 
person as an arrear of land revenue. 

28G. Power to require payment of rent or damages in respect of airport premises.—(1) Where 
any person is in arrears of rent payable in respect of airport premises, the eviction officer may, by order, 
require that person to pay the same within such time and in such instalments as may be specified in the 
order. 

(2) Where any person is, or has at any time been, in unauthorised occupation of any airport premises, 
the eviction officer may, having regard to such principles of assessment of damages as may be prescribed, 
assess the damages on account of the use and occupation of such premises and may, by order, require that 
person to pay the damages within such time and in such instalments as may be specified in the order. 

(3) While  making  an  order  under  sub-section  (1)  or sub-section (2), the eviction  officer  may  direct 
that the arrears of rent or, as the case may be, damages shall be payable together with simple interest at 
such rate as may be prescribed. 

(4) No order under sub-section (1) or sub-section (2) shall be made against any person until after the 
issue of a notice in writing to the person calling upon him to show cause within such period not being less 
than  seven  days  but  not  exceeding  thirty  days  as  may  be  specified  in  the  notice  as  to  why  such  order 
should not be made, and until his objections, if any, and any evidence he may produce in support of the 
same have been considered by the eviction officer. 

28H. Powers of eviction officers.—An eviction officer shall, for the purpose of holding any inquiry 

into  this  Chapter,  have  the  same  powers,  as  are  vested  in  a  civil  court  under  the  Code  of  Civil             
Procedure, 1908 (5 of 1908), while trying a suit in respect of the following matters, namely:— 

(a) summoning and enforcing the attendance of any person and examining him on oath; 

(b) requiring the discovery and production of documents; 

(c) any other matter which may be prescribed. 

[28-I. Establishment of Tribunal.]—Omitted by The Tribunals Reforms Act, 2021 (33 of 2021), s. 19 

(w.e.f. 4-4-2021). 

 [28J. Resignation and removal.]—Omitted by ibid., s. 19 (w.e.f. 4-4-2021). 

1[28JA.  Qualifications,  terms  and  conditions  of  service  of  Chairperson.]—Omitted  by  ibid.,  s.  19 

(w.e.f. 4-4-2021). 

28K. Appeals to Tribunal.—(1) Any person aggrieved by an order of the eviction officer under this 

Chapter may, within fifteen days from the date of such order, prefer an appeal to the 2[High Court]: 

1. Ins. by Act 7 of 2017, s. 166 (w.e.f. 26-5-2017). 
2. Subs. by Act 33 of 2021, s. 19, for “Tribunal in such form as may be prescribed” (w.e.f. 4-4-2021). 

15 

 
                                                           
Provided that the 1[High Court] may entertain any appeal after the expiry of the said period of fifteen 
days, but not after the period of thirty days from the date aforesaid, if it is satisfied that the appellant was 
prevented by sufficient cause from filing the appeal in time.  

2* 

* 

* 

* 

* 

[28L.  Procedure  and  powers  of  Tribunal.]—Omitted  by  The  Tribunals  Reforms  Act,  2021  (33  of 

2021), s. 19 (w.e.f. 4-4-2021). 

28M.  Finality  of  orders.—Subject  to  the  provisions  of  this  Act,  every  order  made  by  an  eviction 
officer  3*** under this Chapter shall be final and shall not be called in question in any suit, application, 
execution or other proceeding and no injunction shall be granted by any court or other authority in respect 
of any action taken or intended to be taken in pursuance of any power conferred by or under this Chapter. 

28N. Offences under this Chapter.—(1) Whoever, unlawfully occupies any airport premises, shall 

be punishable with imprisonment for a term which may extend to six years and with fine. 

(2)  Whoever  fails  to  comply  with  any  order  of  the  eviction  officer  or  the  1[High  Court]under  this 
Chapter shall be punishable with imprisonment for a term which may extend to seven years and with fine. 

(3) If any person who has been evicted from any airport premises under this Chapter again occupies 
the premises without authority for such occupation, he shall be punishable with imprisonment for a term 
which may extend to ten years and with fine. 

(4) The court may, while convicting a person under sub-section (3), make an order for evicting that 
person summarily and he shall be liable to such eviction without prejudice to any other action that may be 
taken under this Chapter.  

28-O. Offences by companies.—(1) Where any offence under this Chapter has been committed by a 
company, every person who, at the time the offence was committed, was directly in charge of, and was 
responsible to, the company for the conduct of the business of the company, as well as the company, shall 
be  deemed  to  be  guilty  of  the  offence  and  shall  be  liable  to  be  proceeded  against  and  punished 
accordingly:  

Provided  that  nothing  contained  in  this  sub-section  shall  render  any  such  person  liable  to  any 
punishment provided in this Chapter, if he proves that the offence was committed without his knowledge 
or he has exercised all due diligence to prevent the commission of such offence. 

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Chapter has 
been committed by a company and it is proved that the offence has been committed with the consent or 
connivance of, or is attributable to, any neglect on the part of, any director, manager, secretary or other 
officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty 
of that offence and shall be liable to be proceeded against and punished accordingly. 

Explanation —For the purposes of this section,— 

(a) “company” means any body corporate and includes a firm or other association of individuals; 

and 

(b) “director”, in relation to a firm, means a partner in the firm. 

28P.  Cognizance  of  offences.—No  court  shall  take  cognizance  of  any  offence  under  this  Chapter 
except on a complaint made by the Authority, eviction officer or any other officer authorised by it and no 
court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any 
offence punishable under this Chapter.  

28Q. Power to obtain information.—If the eviction officer has reason to believe that any persons 
are in an unauthorised occupation of any airport premises, he or any other officer authorised by him in 
this behalf may require those persons or any other person to furnish information in relation to the names 

1. Subs. by Act 33 of 2021, s. 19, for “Tribunal” (w.e.f. 4-4-2021). 
2. Sub-sections (2), (3), (4) and (5) omitted by s. 19, ibid. (w.e.f. 4-4-2021). 
3. The words “or the Tribunal” omitted by s. 19, ibid. (w.e.f. 4-4-2021). 

16 

 
 
 
 
 
 
 
 
 
                                                           
and  other  particulars  of  the  persons  in  occupation  of  the airport  premises  and every  person  so  required 
shall be bound to furnish the information in his possession.  

28R.  Officers,  etc.,  to  aid  and  assist.—It  shall  be  the  duty  of  all  the  officers  of  the  Government 
including police officers and any local authority to aid and assist the eviction officer or other officers of 
the Authority in the discharge of their functions under this Chapter.] 

CHAPTER VI 

MISCELLANEOUS 

29. Submission of annual report.—(1) The Authority shall, as soon as may be after the end of each 
financial year, prepare and submit to the Central Government in such form as may be prescribed a report 
giving an account of its activities during that financial year and the report shall also give an account of the 
activities which are likely to be undertaken by the Authority during the next financial year. 

(2) The Central Government shall cause such report to be laid before both Houses of Parliament as 

soon as may be after it is submitted.  

30.  Delegation.—The  Authority  may,  by  general  or  special  order  in  writing,  delegate  to  the 
Chairperson  or  any  other  member  or  to  any  officer  of  the  Authority,  subject  to  such  conditions  and 
limitations,  if  any,  as  may  be  specified  in  the  order,  such  of  its  powers  and  functions  under  this              
Act, (except the powers under section 42) as it may deem necessary. 

31. Authentication of orders and other instruments of the Authority.—All orders and decisions 
of  the  Authority  shall  be  authenticated  by  the  signature  of  the  Chairperson  or  any  other  member 
authorised  by  the  Authority  in  this  behalf  and  all  other  instruments  executed  by  the  Authority  shall  be 
authenticated by the signature of an officer of the Authority authorised by it in this behalf.  

32. Officers and employees of the Authority to be public servants.—All officers and employees of 
the Authority shall, while acting or purporting to act in pursuance of the provisions of this Act or of any 
rule or regulation made thereunder, be deemed to be public servants within the meaning of section 21 of 
the Indian Penal Code (45 of 1860). 

33. Protection of action taken in good faith.— No suit, prosecution or other legal proceeding shall 
lie  against  the  Authority  or  any  member  or  any  officer  or  other  employee  of  the  Authority  1***  for 
anything which is in good faith done or intended to  be done in pursuance of this Act or of any rule or 
regulation made thereunder or for any damage sustained by any aircraft or vehicle in consequence of any 
defect  in  any  of  the  airports,  civil  enclaves,  heliports,  airstrips,  aeronautical  communication  stations  or 
other things belonging to or under the control of the Authority.  

34. Custody and disposal of lost property.—Subject to such regulations as the Authority may make 
in  this  behalf,  the  authority  shall  provide  for  securing  the  safe  custody  and  restoration  of  any  property 
which,  while  not  in  proper  custody,  is  found  on  any  premises  belonging  to  the  Authority  or  under  its 
overall control or in any aircraft on any such premises. 

35. Provisions relating to income-tax.—For the purposes of the Income-tax Act, 1961 (43 of 1961) 
or  any  other  enactment  for  the  time  being  in  force  relating  to  income-tax  or  any  other  tax  on  income, 
profits  or  gains, the  Authority  shall  be deemed  to  be  a company  within  the  meaning  of  the  Income-tax 
Act, 1961 and shall be liable to tax accordingly on its income, profits and gains. 

36. Power of the Authority to undertake certain works.—The Authority may undertake to carry 
out on behalf of any person any works or services or any class of works or services on such terms and 
conditions as may be agreed upon between the Authority and the person concerned.  

37.  Power  to  issue  directions.—(1)  The  Authority  or  any  officer  specially  authorised  by  it  in  this 
behalf may, from time to time, by order, issue directions, consistent with the provisions of the Aircraft 
Act,  1934  (22  of  1934)  and  the  rules  made  thereunder,  with  respect  to  any  of  the  matters  specified  in 
clauses (f), (h), (i), (j), (k), (m), (p), (qq) and (r) of  sub-section (2) of section 5 of that Act, to any person 
or persons engaged in aircraft operations or using any  airports, heliport, airstrip or civil enclave, in any 

1. The words “or the Chairperson of the Tribunal” omitted by Act 33 of 2021, s. 19 (w.e.f. 4-4-2021). 

17 

 
                                                           
case  where  the  Authority  or  the  officer  is  satisfied  that  in  the  interests  of  the  security  of  India  or  for 
securing the security of the aircraft it is necessary to do so. 

(2) Every direction issued under sub-section (1) shall be complied with by the person or persons to 

whom such direction is issued. 

(3)  If  any  person  wilfully  fails  to  comply  with  any  direction  issued  under  this  section,  he  shall  be 
punishable with imprisonment for a term which may extend to six months or with fine which may extend 
to five thousand rupees, or with both. 

38. Power of the Central Government to temporarily divest the Authority of the management of 
any  airport.—(1)  If,  at  any  time,  the  Central  Government  is  of  opinion that  in the  public  interest  it is 
necessary  or  expedient  so  to  do,  it  may,  by  order,  direct  the  Authority  to  entrust  the  administration, 
management  or  similar  other  functions  of  any  airport,  heliport,  airstrip,  civil  enclave,  aeronautical 
communication station, or any other agency or department of any airport, heliport, airstrip civil enclave or 
aeronautical communication station with effect from such date and to such person as may be specified in 
the order and the Authority shall be bound to comply with such direction: 

Provided that before an order is made under this sub-section the Authority shall be given a reasonable 

opportunity of being heard in the matter. 

(2)  Where  the  management  of  any  airport,  heliport,  airstrip,  civil  enclave  or  aeronautical 
communication  station  or  any  other  agency  or  department  thereof  is  entrusted  to  any  person  specified 
under sub-section (1) (hereafter referred to in this section as the  authorised person), the Authority shall 
cease  to  exercise  and  discharge  all  its  powers  and  functions  under  this  Act  in  relation  to  such  airport, 
heliport, airstrip, civil enclave or aeronautical communication station or any other  agency or department 
thereof  and  such  powers  and  functions  shall  be  exercised  and  discharged  by  the  authorised  person  in 
accordance with the instructions, if any, which the Central Government may give to the authorised person 
from time to time: 

Provided that no such power or function as may be specified by the Central Government by a general 
or  special  order  shall  be  exercised  or  discharged  by  the  authorised  person  except  with  the  previous 
sanction of the Central Government. 

(3) An order made under sub-section (1) shall, unless rescinded, be in operation for a period of six 
months  from  the  date  on  which  the  management  of  the  airport,  heliport,  airstrip,  civil  enclave  or 
aeronautical  communication  station  or  any  other  agency  or  department  thereof  is  entrusted  to  the 
authorised person: 

Provided  that  the  Central  Government  may  extend  such  period  for  a  further  period  or  periods  not 

exceeding eighteen months. 

(4) During the operation of an order made under sub-section (1), it shall be competent for the Central 
Government to issue, from time to time, such directions to the  Authority as are necessary to enable the 
authorised person to exercise the powers and discharge the functions of the Authority under this Act in 
relation to the airport, heliport, airstrip, civil enclave or aeronautical communication station, or any other 
agency  or  department  thereof  the  management  of  which  has  been  entrusted  to  him  and  in  particular  to 
transfer any sum of money from the fund of the Authority to the authorised person for the management of 
the airport, heliport, airstrip, civil enclave or aeronautical communication station or any other agency or 
department thereof and every such direction shall be complied with by the Authority. 

(5)  On  the  cesser  of  operation  of  any  order  made  under  sub-section  (1)  in  relation  to  any  airport, 
heliport, airstrip, civil enclave or aeronautical communication station, or any other agency or  department 
thereof  the  authorised  person  shall  cease  to  exercise  and  perform  the  powers  and  functions  of  the 
authority  under  this  Act  in  relation  to  such  airport,  heliport,  airstrip,  civil  enclave  or  aeronautical 
communication  station  or  any  other  agency  or  department  thereof  and  the  Authority  shall  continue  to 
exercise and perform such powers and functions in accordance with the provisions of this Act. 

(6)  On  the  cesser  of  operation  of  any  order  made  under  sub-section  (1)  in  relation  to  any  airport, 
heliport, airstrip, civil enclave or aeronautical communication station, or any other agency or department 
thereof the authorised person shall hand over to the Authority any property (including any sum of money 

18 

 
or other asset) remaining with him in connection with the management of such airport, heliport, airstrip, 
civil enclave or aeronautical communication station. 

(7)  Anything  done  or  any  action  taken  lawfully  by  the  authorised  person  in relation to  any  airport, 
heliport, airstrip, civil enclave or aeronautical communication station or any other agency or department 
thereof  during  the  period  of  operation  of  an  order  made  under sub-section (1)  shall  be  deemed  to  have 
been done or taken by the Authority and shall be binding on the Authority.  

39. Power of the Central Government to supersede the Authority.—(1) If, at any time, the Central 

Government is of opinion—  

(a) that on account of a grave emergency, the Authority is unable to discharge the functions and 

duties imposed on it by or under the provisions of this Act; or 

(b) that the Authority has persistently made default in complying with any direction issued by the 
Central Government under this Act or in the discharge of the functions and duties imposed on it by or 
under  the  provisions  of  this  Act  and  as  a  result  of  which  default  the  financial  position  of  the  
Authority  or  the  administration  of  any  airport,  heliport,  airstrip,  civil  enclave  or  aeronautical 
communication station has deteriorated; or 

(c) that circumstances exist which render it necessary in the public interest so to do,  

the  Central  Government  may,  by  notification  in  the  Official  Gazette,  supersede  the  Authority  for  such 
period, not exceeding six months, as may be specified in the notification: 

Provided  that  before  issuing  a  notification  under  this  sub-section  for  the  reasons  mentioned  in               

clause  (b),  the  Central  Government  shall  give  a  reasonable  opportunity  to  the  Authority  to  show  cause 
why  it  should  not  be  superseded  and  shall  consider  the  explanations  and  objections,  if  any,  of  the 
Authority. 

(2) Upon the publication of a notification under sub-section (1) superseding the Authority,— 

(a) all the members shall, as from the date of supersession, vacate their offices as such; 

(b)  all  the  powers,  functions  and  duties  which  may,  by  or  under  the  provisions  of  this  Act,  be 
exercised  or  discharged  by  or  on  behalf  of the  Authority,  shall  until  the  Authority  is  re-constituted 
under  sub-section  (3),  be  exercised  and  discharged  by  such  person  or  persons  as  the  Central 
Government may direct; 

(c) all property owned or controlled by the Authority shall, until the  Authority is re-constituted 

under sub-section (3), vest in the Central Government. 

(3)  On  the  expiration  of  the  period  of  supersession  specified  in  the  notification  issued  under              

sub-section (1), the Central Government may— 

(a) extend the period of supersession for such further term not  exceeding six months, as it may 

consider necessary; or 

(b) re-constitute the Authority by fresh appointment and in such case the members who vacated 

their offices under clause (a) of   sub-section (2) shall not be deemed disqualified for appointment: 

 Provided  that  the  Central  Government  may,  at  any  time  before  the  expiration  of  the  period  of 

supersession,  whether  as  originally  specified  under  sub-section  (1)  or  as  extended  under  this                    
sub-section, take action under clause (b) of this sub-section. 

(4) The Central Government shall cause a notification issued under sub-section (1) and a full report of 
any  action taken  under  this  section and the  circumstances  leading  to such  action  to  be laid  before both 
Houses of Parliament at the earliest opportunity.  

40. Power of the Central Government to issue directions.—(1) Without prejudice to the foregoing 
provisions of this Act, the Authority shall, in the discharge of its functions and duties under this Act, be 
bound by such directions on questions of policy as the Central Government may give in writing to it from 
time to time: 

19 

 
Provided  that  the  Authority  shall,  as  far  as  practicable,  be  given  opportunity  to  express  its  views 

before any direction is given under this sub-section. 

(2) The decision of the Central Government whether a question is one of policy or not shall be final. 

(3) The Central Government may, from time to time, issue directions to the Authority regarding the 
discharge of any functions to it under clause (e) of sub-section (3) of section 12 and the Authority shall be 
bound to comply with such directions. 

 41. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette, 

make rules for carrying out the provisions of this Act. 

(2)  In  particular  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for— 

(a) the period of notice as may be given by the Central Government to terminate the appointment 
any 

part-time  member 

the  Authority 

proviso 

clause 

under 

(b) 

of 

of 

to                                                    

of 
sub-section (1) of section 5;  

(b) the conditions of service of the members of the Authority under sub-section (2) of section 5;  

(c) the period of notice as may be given by any member to resign his office under sub-section (3) 

of section 5; 

(d)  the  provisions  subject  to  which  officers  and  other  employees  may  be  appointed  by  the 
Authority and the category of officers to be appointed after approval of the Central Government under 
the proviso to sub-section (1) of section 10; 

(e)  the  provisions  subject  to  which  the  Authority  may  manage  the  airports,  civil  enclaves  and 

aeronautical communication stations under sub-section (1) of section 12;  

1[(ee)  2[the  rate  of  development  fees  in  respect  of  airports  other  than  major  airports  and]  the 

manner of regulating and utilising the fees under section 22A;]  

(f) the manner in which the Authority may invest its funds under clause (b) of sub-section (3) of 

section 24; 

(g) the form in which the annual statement of accounts shall be prepared by the Authority under 

sub-section (1) of section 28:  

1[(gi) the other manner of serving notice under sub-section (3) of section 28C; 

(gii) the other manner of serving notice  under sub-section (4) of section 28C; 

(giii) the principles of assessment of damages under sub-section (2) of section 28G; 

(giv) the rate of simple interest under sub-section (3) of section 28G; 

(gv) any other matter under clause (c) of section 28H;] 

3* 

* 

* 

* 

* 

 (h) the form in which a report giving an account of its activities shall be prepared and submitted 

by the Authority to the Central Government under sub-section (1) of section 29; and 

(i) any other matter which is to be, or may be, prescribed.  

42. Power to make regulations.—(1) The Authority may make regulations not inconsistent with this 
Act and the rules made thereunder to provide for all matters for which provision is necessary or expedient 
for the purpose of giving effect to the provisions of this Act. 

(2)  Without  prejudice  to  the  generality  of  the  foregoing  power,  such  regulations  may  provide         

for— 

1. Ins. by Act of 43 of 2003, s.10 (w.e.f. 1-7-2004). 
2. Subs. by Act 27 of 2008, s. 54 and the Schedule, for “the rate of development fees and” (w.e.f. 1-1-2009). 
3. Clauses (gvi), (gvii), (gviii) and (gix) omitted by Act 33 of 2021, s. 19 (w.e.f. 4-4-2021). 

20 

 
 
 
 
 
 
 
 
                                                           
(a) the time and places of the meetings of the Authority and the procedure to be followed for the 

transaction of business including the quorum at such meetings under sub-section (1) of section 8; 

(b)  the  conditions  of  service  and  the  remuneration  of  officers  and  other  employees  to  be 

appointed by the Authority under sub-section (2) of section 10; 

(c) the construction of residential accommodation for the officers and other employees appointed 

by the Authority under clause (e) of sub-section (3) of section 12; 

(d)  the  storage  or  processing  of  goods  in  any  warehouse  established  by  the  Authority  under            

clause (g) of sub-section (3) of section 12 and the charging of fees for such storage or processing;  

(e)  the  contracts  or  class  of  contracts  which  are  to  be  sealed  with  the  common  seal  of  the 

Authority  and  the  form  and  manner  in  which  a  contract  may  be  made  by  the  Authority  under            
sub-section (1) of section 21; 

(f)  the  custody  and  restoration  of  lost  property  and  the  terms  and  conditions  under  which  lost 

property may be restored to the persons entitled thereto under section 34; 

(g) the disposal of any lost property in cases where such property is not restored; 

 (h)  securing  the  safety  of  aircraft,  vehicles  and  persons  using  the  airport  or  civil  enclave  and 
preventing danger to the public arising from the use and operation of aircraft in the airport or civil 
enclave; 

(i) preventing obstruction within the airport or civil enclave for its normal functioning; 

(j) prohibiting the parking or waiting of any vehicle of carriage within the airport or civil enclave 

except at places specified by the Authority; 

(k) prohibiting or restricting access to any part of the airport or civil enclave; 

(l) preserving order within the airport or civil enclave and preventing damage to property therein; 

(m) regulating or restricting advertising within the airport or civil enclave; 

(n) requiring any person, if so directed by an officer appointed by the Authority in this behalf, to 

leave the airport or civil enclave or any particular part of the airport or civil enclave; and 

(o) generally for the efficient and proper management of the airport or civil enclave.  

(3) Any regulation made under any of the clauses (h) to (o) (both inclusive) of sub-section (2) may 
provide  that  a  contravention  thereof  shall  be  punishable  with  fine  which  may  extend  to  five  hundred 
rupees and in the case of a continuing contravention with an additional fine which may extend to twenty 
rupees  for  every  day  during  which  such  contravention  continues  after  conviction  for  the  first  such 
contravention. 

(4) No regulation made by the Authority under this section shall have effect until it has been approved 

by the Central Government and published in the Official Gazette. 

(5)  Notwithstanding  anything  contained  in  this  section,  the  first  regulations  under  this  Act  shall  be 

made by the Central Government and shall have effect on being published in the Official Gazette. 

(6)  The  first  regulations  framed  under  sub-section  (5)  shall  remain  in  force  until  such  time  the 

Authority has made regulations and they are published in the Official Gazette. 

43.  Rules  and  regulations  to  be  laid  before  Parliament.—Every  rule  and  every  regulation  made 
under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it 
is in session, for a total period of thirty days which may be comprised in one session or in two or more 
successive  sessions,  and  if,  before  the  expiry  of  the  session  immediately  following  the  session  or  the 
successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation, as 
the case may be, or both Houses agree that the rule or regulation, as the case may be, should not be made, 
the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case 
may be; so, however, that any such modification or annulment shall be without prejudice to the validity of 
anything previously done under that rule or regulation. 

21 

 
44. Power to remove  difficulties.—(1)  If  any  difficulty  arises  in  giving  effect to  the  provisions  of 
this Act, the Central Government may, by general or special order published in the Official Gazette, make 
such  provisions  not  inconsistent  with  the  provisions  of  this  Act  as  appear  to  it  to  be  necessary  or 
expedient for the removal of the difficulty: 

Provided that no such order shall be made after the expiration of one year from the commencement of 

this Act. 

(2) Every order made under sub-section (1) shall be laid, as soon as may be after it is made, before 
each House of Parliament, while it is in session, for a total period of thirty days which may be comprised 
in one session or in two or more successive sessions, and if, before the expiry of the session immediately 
following the session or the successive sessions aforesaid, both Houses agree in making any modification 
in the order or both Houses agree that the order should not be made, the order shall thereafter have effect 
only in such modified form or be of no effect, as the case may be; so, however, that any such modification 
or annulment shall be without prejudice to the validity of anything previously done under that order. 

 45. [Amendment of Act 22 of 1934.].—Rep. by Repealing and Amending Act, 2001 (30 of 2001), s. 

2 and the First Schedule (w.e.f. 3-11-2001). 

46. Repeal and saving.—(1) On and from the appointed date,— 

(i)  the  International  Airports  Authority  Act,  1971  (43  of  1971)  and  the  National  Airports 

Authority Act, 1985 (64 of 1985) shall stand repealed;  

(ii) the International Airports Authority and the National Airports Authority constituted under 

the aforesaid Acts shall cease to exist. 

(2) Notwithstanding such repeal, anything done or any action taken or purported to have been done 
or taken under the aforesaid Acts so repealed shall, in so far as it is not inconsistent with the provisions 
of this Act, be deemed to have been done or taken under the corresponding provisions of this Act. 

22 

 
