Adani cos caught in branding norms breach
Three committees of the Centre-run Airports Authority of India (AAI) in January found the Adani group in violation of branding norms, prescribed in the concession agreements, at the airports in Ahmedabad, Mangaluru and Lucknow that the conglomerate took over last year. Consequently, the Adani group companies which are operating these three airports have started making changes in brandings and displays in order to bring them in accordance with the concession agreements that they had signed with the AAI. As on June 29, the changes in brandings and displays were in process at Lucknow and Manglauru airports and had been completed at the Ahmedabad airport, the AAI stated. PTI has accessed various documents related to this matter, including details received in response to RTI queries.
The Adani group won the bids to run the aforementioned three airports in February 2019. Its companies Adani Lucknow International Airport Limited (ALIAL), Adani Mangaluru International Airport Limited (AMIAL) and Adani Ahmedabad International Airport Limited (AAIAL) signed the concession agreements with the AAI in February 2020. These companies then took charge of airports in October and November 2020. The AAI in December 2020 found the brandings and displays at the three airports not in accordance with the concession agreements. Therefore, it wrote letters to ALIAL, AMIAL and AAIAL, asking them to take corrective measures. However, these companies in late December responded that they have not violated the branding norms of the agreements.
A month later, the AAI formed three separate committees to carry out joint survey of all hoardings and displays at the three airports and check if they are in compliance with the concession agreements. Each committee had four members: one executive of the Adani group company that is operating the airport, one official of the Centre-run Engineering Projects (India) Limited and two officials of the AAI. In late January, the committee formed on the Lucknow airport submitted its report. It said, "The joint inspection committee found that airport name hoardings displayed by concessionaire (ALIAL) at the airport entrance and exit roads has also got Adani Airports written on both sides of Lucknow International Airport hoardings, which is in violation of concession agreement no. 5.15.2."