ITDC threatens legal action against AAI

INDIA. The India Tourism Development Corp (ITDC) is considering legal action against the Airports Authority of India (AAI) over the latter’s decision to bar the state-owned retailer from participating in the current airport duty free tender.

The ITDC bid was rejected due to the claimed non-payment of rents of approximately INR 20 crore (US$4.3 million) during the last two to three years. But ITDC officials have reportedly hit back with a counter claim that AAI has overcharged it and now owes the tourism ministry arm INR crore 8 (US$2 million). The Times of India quoted ITDC finance director AG Aggarwal as saying the rental calculation on the basis of 2000 passenger traffic figures was “erroneous”.

“They cannot bar us from any future tenders. Our agreement with AAI gives us the right to seek arbitration in case of any unpaid dues before taking such steps. We are seeking legal opinion,” a senior ITDC official told The Times.

Several international companies are expected to bid for the right to operate non-exclusive duty free shopping space of 1,102 sq m (11,858 sq ft) in Delhi, Mumbai, Chennai, Kolkata, Bangalore, Hyderabad, Ahmedabad, Calicut, Goa and Trichy airports, all controlled by the AAI.

The tender closes on 17 November. Those understood to have picked up the tender documents include Dubai-based Flemingo International, Alpha Retail, The Nuance Group, SUTL Services, DFS Group, TrueBell Marketing (a UAE-registered ships’ chandler) and King Power Group of Hong Kong.

Food & Beverage The Magazine eZine