Section 49 of The Airports Economic Regulatory Authority of India Act, 2008
- (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the Central Government shall give a reasonable opportunity to the Authority to show cause as to why it should not be superseded and shall consider the explanations and objections, if any, of the Authority.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 subsection (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.
Summary
- The Central Government has the power to temporarily take over the Authority for a maximum of six months at a time.
- This takeover can happen due to a grave emergency, if the Authority repeatedly fails to do its duties or follow instructions, or if it is in the public interest.
- If the takeover is because the Authority failed in its duties, the Government must first give the Authority a chance to explain itself.
- Once superseded, all Members lose their positions, and the Central Government manages all the Authority's property.
- The Government can appoint someone else to do the Authority's work during this time, and a full report must be shown to Parliament.
- After the period ends, the Government can extend it for another six months or appoint a new team of Members.
Practical examples
FAQ
1. Can the Central Government permanently dissolve the Authority?
No, the takeover can only last for up to six months initially, and can be extended for just one more term of up to six months.
2. What happens to the Members if the Authority is superseded?
They immediately vacate their offices from the date of the supersession.
3. Can the removed Members ever work for the Authority again?
Yes, if the Central Government decides to rebuild the Authority with fresh appointments, the old Members are not disqualified from being appointed again.
4. Does the Authority get any warning before being taken over?
They only get a warning and a chance to explain themselves if the takeover is due to them failing to follow directions or discharge their duties.
Test yourself
Q1.Under Section 49 of The Airports Economic Regulatory Authority of India Act, 2008, what is the maximum initial period the Central Government can specify to supersede the Authority?
Q2.Under Section 49 of The Airports Economic Regulatory Authority of India Act, 2008, in which specific situation must the Central Government give the Authority an opportunity to show cause before superseding it?
Q3.Under Section 49 of The Airports Economic Regulatory Authority of India Act, 2008, what legally happens to the property owned by the Authority upon publication of a supersession notification?
Q4.Under Section 49 of The Airports Economic Regulatory Authority of India Act, 2008, what happens to the Members' eligibility for future roles if they are forced to vacate office during a supersession?