GMR: Telangana High Court has stayed CCI order against Hyderabad airport operator

On a complaint filed by Air Works India (Engineering) Pvt Ltd, the Competition Commission of India (CCI) passed an order, dated October 3, for a detailed investigation into alleged abuse of dominant position and denial of market access by GHIAL.

New Delhi: GMR Infrastructure on Wednesday said the Telangana High Court has stayed Competition Commission's order to probe Hyderabad airport operator GHIAL for alleged anti-competitive business practices with respect to an MRO provider.

GMR Hyderabad International Airport Ltd (GHIAL), part of the GMR Group, is operating the Rajiv Gandhi International Airport in Hyderabad.

On a complaint filed by Air Works India (Engineering) Pvt Ltd, the Competition Commission of India (CCI) passed an order, dated October 3, for a detailed investigation into alleged abuse of dominant position and denial of market access by GHIAL.

Air Works is into providing aircraft maintenance, repair, and overhaul (MRO) services to airlines and general aviation.

In a statement on Wednesday, a GMR Infrastructure spokesperson said the CCI order was stayed by the Telangana High Court on October 16 and that the matter is sub-judice.

The complaint was filed against GHIAL and GMR Aero Technic Ltd (GAT), a wholly-owned subsidiary of GMR Aerospace Engineering Ltd.

It was alleged that GMR owing to its sole control over the Hyderabad airport premises has denied access to Air Works for providing the Line Maintenance Services with an intent to give advantage to GAT at the aerodrome.

The GMR Infrastructure spokesperson said GHIAL had given space on the airside of the Hyderabad Airport to Airworks under an agreement for carrying out their business activities of line maintenance. The term of the agreement in this regard expired on March 22.

As there was a need for space for the airport expansion works and since the agreement also expired, Airworks was requested to vacate the premises, the spokesperson said.

In July, Airworks moved the court seeking extension of space agreement and sought interim relief to continue in the space, he noted.

According to the spokesperson, after the appeal was rejected, Airworks filed a writ petition and is pending with the court for adjudication.

Further, the spokesperson noted that GHIAL challenged the CCI order.

"In compliance with the stay order of the Hon'ble High Court, on October 17, 2019, the CCI was pleased to defer the further proceedings. Hence, the order of CCI is in abeyance and cannot be acted upon," he added.