In Brief
Delhi International Airport Limited and Mumbai International Airport Limited challenged regulatory orders determining aeronautical tariffs and development fees at major airports. The Supreme Court examined multiple issues including whether Fuel Throughput Charges constitute aeronautical revenue, how to calculate the Hypothetical Regulatory Asset Base, the proper application of the CPI-X tariff formula, and treatment of corporate taxes. The Court upheld most regulatory decisions with judicial deference to expertise, but modified orders on one issue: Annual Fees paid to AAI should not be deducted from aeronautical expenses before calculating corporate tax. The Court emphasized that regulatory decisions deserve respect unless manifestly irrational, and that prior contractual agreements must be harmoniously construed with statutory requirements in pioneering infrastructure projects."
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