Following reports that GMR Infrastructure was under investigation by the Competition Commission of India (CCI) for alleged anti-competitive business practises, the company says that the Telangana High Court had stayed the CCI’s order on October 16, and that the matter is currently sub-judice.
The CCI had passed an order on October 3 asking for a detailed investigation into an alleged abuse of GMR’s dominant market position and a denial of market access by the Greater Hyderabad International Airport Ltd (GHIAL).
The issue started when Air Works India (Engineering) Pvt Ltd, a company that provides aircraft maintenance, repair and overhaul (MRO) services to airlines and general aviation, was served a vacate notice on the account that the agreement for its use of space inside the airport had expired, and that the same was needed for an airport expansion.
A spokesperson for GMR Infra said that GHIAL had given space to Airworks on the airside of the Hyderabad Airport under an agreement, the terms of which expired on March 22. The spokesperson said that Airworks approached the Telangana High Court on July 2 seeking an extension of the space agreement and interim relief—which was dismissed.
According to the GMR statement, Airworks made an appeal before a Division Bench which was also dismissed, on the grounds that “the transaction entered between the parties is purely a commercial one and no element of public interest is involved.”
The writ petition by Airworks was still pending with the High Court, when Airworks approached the CCI on the same issue seeking relief. The CCI passed an ex-parte order on October 10, which GHIAL challenged since the matter is still sub-judice in the writ petition. As a result, the High Court stayed all proceedings before the CCI, which deferred the same in compliance with the order on October 17.
GMR operates airports in Delhi, Hyderabad and Cebu in the Philippines. On October 1, the CCI approved a sell of stake in GMR's airport businesses to Tata Realty, GIC and SSG.
