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‘CAG report on Delhi airport erroneous’

The Civil Aviation Ministry has termed as 'erroneous' the CAG's observations that 'undue benefits' were given to operator of the Delhi International Airport.

In a point-by-point rebuttal of the auditor's observations on Delhi International Airport, the Ministry has told PAC that the process of selection of joint venture partners was completed as per laid-down procedure by observing all relevant guidelines and in accordance with the decisions of the Union Cabinet and the Empowered Group of Ministers [EGoM].

It said the process also underwent judicial scrutiny and was validated by the SC.

'No discrepancies were found at any stage. The entire process has been examined at nine levels of scrutiny...,' the Ministry informed the PAC in a written submission.

On the issue of CAG's observation on conflict between Operation Management and Development Agreement and Airport Economic Regulatory Authority Act, the Ministry said OMDA pre-dates AERA Act. Referring to the auditor's observation on misuse of the concept of upfront fee, the Civil Aviation Ministry said the condition was mentioned in the bidding documents.
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