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DIAL can't display GMR, IPL team logos for free: Auditor

Last Updated: Thursday, April 11, 2013 - 22:08

Mumbai: The GMR Group, which holds majority stake in the joint venture running the Delhi airport, has to share the revenue it earns from displaying ads of GMR and its Indian Premier League team at the airport with its partner AAI, an independent auditor is learnt to have said.

"The independent auditor has raised question on Delhi Daredevils/GMR logo displayed at the Delhi airport. The auditors says the GMR Group and Delhi Daredevils are two separate entities and not part of Delhi International Airport Ltd (DIAL). And DIAL should treat them (display of logos) as advertisement," Aviation Ministry sources said.

"So on this premises, the auditor has expressed view that DIAL should share its revenue (generated from the display of these logos with the Airports Authority of India (AAI)," they said.

DIAL, however, said use of the GMR logo is not prohibited under the operations, maintenance and development agreement (OMDA), the shareholders and state support pacts inked with the Ministry.

Officials of the AAI, which is part of the joint venture that manages one of India's busiest airports, could not be contacted.

The Hyderabad-based GMR Group and AAI have 74 percent and 26 percent holdings respectively in DIAL, along with Fraport of Germany, which holds 10 percent.

AAI gave control of the Delhi airport to DIAL under a privatisation pact in 2006 that mandated a 46 percent revenue share to the former under a public-private partnership.

"The revenue auditors appointed by AAI have not made any mention of Delhi Daredevils at IGIA (Indira Gandhi International Airport) nor about our logo displayed in the airport except at the Delhi Daredevils bar which has an arm's length commercial arrangement with DIAL.

"However, the audit has made an observation about the GMR logo being placed along with DIAL logo," DIAL said in a statement to PTI here.
DIAL said it had clarified its position soon after the receipt of the audit report that the use of the GMR logo is not prohibited under the different agreements it had signed.

A DIAL spokesperson said use of the GMR logo underlines the continuing commitment of the Group to the Delhi airport and demonstrates that its technical, financial and operational expertise continues to be available for DIAL.

The airport operator is already under the scanner of Parliament's Public Accounts Committee, CAG also and the Committee on Public Undertakings for one reason or the other.

At a PAC meeting in February, members were reportedly critical of GMR recovering capital expenditure from airport users.

The GMR Group's decision to levy user charges was questioned by the PAC in the context of the firm failing to develop the airport land earmarked for commercial use.


First Published: Thursday, April 11, 2013 - 22:08
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