Delhi High Court Quashes MCD's Tender Notice for Solid Waste Management in Aerocity
Aerocity Falls Under Exclusive Domain of Delhi International Airport Ltd, Rules Court
In a landmark judgment, the Delhi High Court has quashed the Municipal Corporation of Delhi's (MCD) tender notice dated November 28, 2024, which sought bids for setting up a Material Recovery Facility (MRF) for managing dry solid waste in the Najafgarh Zone, including Aerocity. The Court ruled that Aerocity, a part of the Indira Gandhi International Airport (IGIA), falls under the exclusive domain of Delhi International Airport Ltd (DIAL) according to the Operation Management and Development Agreement (OMDA) executed between the Airports Authority of India (AAI) and DIAL.
Justice Jyoti Singh, presiding over the case, emphasized that the solid waste management responsibilities at Aerocity are vested with DIAL as per the OMDA and related statutory provisions. The Court noted that the inclusion of Aerocity in MCD's tender notice was unlawful, as DIAL holds exclusive rights to manage waste within the Airport Site, including Aerocity, under the AAI Act and Solid Waste Management Rules, 2016.
DIAL, established as a consortium between GMR Airports Limited, AAI, and Fraport AG Frankfurt Airport Services Worldwide, argued that MCD’s tender notice unlawfully encroached upon its exclusive rights to manage solid waste at the Airport Site. The Court found merit in DIAL’s contention that Aerocity is part of IGIA's Commercial Zone, as reflected in the Master Plan 2016, and that DIAL has been managing the solid waste through agreements with specialized waste management agencies since 2007.
The judgment reiterated the distinction between municipal obligations and the responsibilities of bulk waste generators under the Solid Waste Management Rules, 2016. The Court held that Rule 4(7) of the 2016 Rules applies to institutions with more than 5,000 square meters of area like DIAL, granting them exclusive rights to manage waste within their premises and hand over residual waste to authorized collectors as directed by the local body.
The Court dismissed MCD's argument that solid waste management is solely a municipal function under the DMC Act, emphasizing that the Act does not confer exclusive rights to MCD to manage solid waste in areas like Aerocity. The judgment highlighted that the AAI Act, being a special legislation enacted under the Union List, prevails over the DMC Act concerning functions related to civil aviation and airport operations.
With the quashing of the tender notice, MCD is free to proceed with the tender process for the remaining areas of the Najafgarh Zone, excluding Aerocity, aligning with the Court's interim order issued on December 24, 2024.
Bottom Line:
Solid Waste Management - Exclusive domain of Delhi International Airport Ltd. (DIAL) at Airport Site including Aerocity - Municipal Corporation of Delhi (MCD) cannot assert right over solid waste management in this area.
Statutory provision(s): Solid Waste Management Rules, 2016 - Rule 4(7), Airports Authority of India Act, 1994 - Sections 12 and 12A, Constitution of India - Article 243W, Municipal Corporation of Delhi Act, 1957 - Sections 42 and 43
