Big win for Adani Group as India Supreme Court rules in its favour

The Adani Group, one of India’s largest conglomerates, has scored a major victory in the Supreme Court, which ruled in its favour in a dispute over the development of an airport in Kerala. The apex court upheld the validity of the lease agreement between the Adani Group and the Airports Authority of India (AAI), and dismissed the petitions filed by the Kerala government and others challenging the deal.

The Adani Group had won the bid to operate and develop six airports in India, including the Thiruvananthapuram International Airport, in 2019. However, the Kerala government opposed the move, claiming that it had a stake in the airport and that the transfer of management to a private entity would affect the state’s interests. The Kerala government also alleged that the bidding process was flawed and lacked transparency.

The Supreme Court, however, rejected these arguments and held that the AAI had the authority to lease out the airport to the Adani Group, as per the provisions of the Airports Authority of India Act, 1994. The court also noted that the Adani Group had fulfilled all the eligibility criteria and had offered the highest per-passenger fee to the AAI. The court said that there was no evidence of any malafide or arbitrariness in the award of the contract.

The ruling is a significant boost for the Adani Group, which has been expanding its presence in various sectors, including energy, mining, ports, logistics, and defence. The group has also faced criticism and controversies over some of its projects, especially in the environmental and social domains. The group’s chairman, Gautam Adani, is one of the richest men in India and a close ally of Prime Minister Narendra Modi.

The ruling is a major victory for Adani Groups, which had invested around Rs 10,000 crore in developing the coal blocks and setting up power plants in Odisha. The company had argued that it had followed all the procedures and guidelines for obtaining the coal blocks and that the cancellation was arbitrary and illegal. The company had also claimed that it had suffered huge losses due to the cancellation and sought compensation from the central government.

The ruling has several implications for the coal sector and the power sector in India. Some of the possible implications are:

The ruling may boost the confidence of private players in investing in coal mining and power generation projects in India, as it shows that the judiciary can protect their interests and rights in case of any disputes or policy changes.
The ruling may also encourage more competition and innovation in the coal sector, as it may open up more opportunities for private players to participate in coal block auctions and bidding processes.

The ruling may also have an impact on the environment and climate change, as it may lead to more coal mining and consumption in India, which is already one of the largest emitters of greenhouse gases in the world. The ruling may also affect the implementation of India’s commitments under the Paris Agreement, which aims to reduce the dependence on fossil fuels and increase the share of renewable energy sources.

The ruling may also have a social and political impact, as it may trigger protests and opposition from various groups and parties, who may raise concerns over the environmental, human rights, and land acquisition issues related to coal mining and power projects. The ruling may also affect the relations between the central government and the state governments, especially those ruled by different parties, as it may create conflicts over the allocation and distribution of natural resources and revenues.

The Adani Group has welcomed the Supreme Court’s verdict and said that it is committed to developing world-class airports in India. The group also said that it respects the sentiments of the people of Kerala and will work with all stakeholders to ensure the growth and development of the state.