Dhaka: Passengers flying through Delhi and Mumbai airports may face sharply higher user charges - in some cases rising as much as 22 times - after the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) ordered a recalculation of tariffs.

The matter has entered a new legal phase, with the Ministry of Civil Aviation (MoCA) saying its position aims to prevent tariff shocks for travellers.

The Supreme Court is scheduled to hear the case on Dec. 3, 2025.

Sources told businessline that MoCA's clarity should reinforce the Airports Economic Regulatory Authority's (AERA) case before the court.

AERA has appealed a July 2025 TDSAT ruling that struck down its method for computing the Hybrid Regulatory Asset Base (HRAB), which is used to set aeronautical tariffs and user development fees (UDF).

Following the ruling, AERA warned that implementing the order could create a financial burden of more than ₹50,000 crore, recoverable through airport charges and UDF, leading to steep tariff increases at both airports.

Industry assessments show domestic UDF could rise from ₹129 to ₹1,261 at Delhi airport and from ₹175 to ₹3,856 at Mumbai airport.

The dispute dates back to 2012–13, when the operators of Delhi International Airport Ltd (DIAL) and Mumbai International Airport Ltd (MIAL) challenged AERA's HRAB calculations.

Both airports, operating under PPP agreements since 2009–10, follow a Regulatory Asset Base model. For the first control period, assets transferred from the Airports Authority of India were assessed using HRAB as defined in the State Support Agreement.

TDSAT upheld AERA's methodology in 2018, and the Supreme Court agreed in 2022 while asking the tribunal to reconsider a MoCA letter from May 24, 2011.

MoCA has since clarified that the letter did not support the operators' position or the inclusion of non-aeronautical revenue in HRAB.

However, in July 2025, TDSAT struck down AERA's computation again and ordered a fresh assessment that could allow airports to recover significantly higher sums from passengers.

AERA says the ruling is factually incorrect, legally untenable and outside the scope set by the Supreme Court when it remanded the matter in 2023. The regulator filed its appeal on July 31, 2025.

DIAL and MIAL have told the court that MoCA's decision not to appeal implies acceptance of TDSAT's interpretation, a claim the Ministry disputes.

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