Section 12A of The Airports Authority of India Act, 1994
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.
- (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.]
Summary
- The Authority can lease out airport premises, including buildings and structures, to private parties.
- The purpose of the lease must be for public interest or for the better management of the airports.
- The Authority cannot lease out its duties related to air traffic service or airport security (watch and ward).
- Before making any lease, the Authority must get approval from the Central Government.
- The rent or money paid by the private party goes directly into the Authority's official fund.
- The private party taking the lease gets all the necessary powers of the Authority to perform the leased functions.
Practical examples
FAQ
1. Can the Authority lease out the security checkpoints to a private company?
No, the law specifically prevents the Authority from leasing out watch and ward (security) functions.
2. Does the Authority need permission to lease out a terminal?
Yes, they must get prior approval from the Central Government.
3. Who gets to keep the rent money from the lease?
The money becomes part of the Authority's own fund.
Test yourself
Q1.Under Section 12A of The Airports Authority of India Act, 1994, which specific function under Section 12 is the Authority strictly prohibited from leasing to a third party?
Q2.Under Section 12A of The Airports Authority of India Act, 1994, what happens to the money paid by the lessee for the airport premises?
Q3.Under Section 12A of The Airports Authority of India Act, 1994, what level of power does the private lessee receive to carry out the assigned functions?
Q4.Under Section 12A of The Airports Authority of India Act, 1994, whose previous approval is legally required before the Authority can execute a lease?