Adani Group 'lying brazenly' to stock exchanges: Mahua Moitra over airline plans

NEW DELHI: Trinamool Congress MP Mahua Moitra has accused the Adani Group of "lying brazenly" to stock exchanges over its alleged plans to launch an airline, after the government confirmed that airport operators are not barred from owning carriers.

The sharp exchange follows the Adani Group's denial of any intention to enter the airline business, even as the government admitted in Parliament that the Airports Authority of India (AAI) received a request for a waiver from contractual restrictions on airport-airline cross-holding.

Government's clarification triggers political row

In a written reply to the Lok Sabha, the government said no rule stops airport operators from venturing into the airline business. However, it noted that public-private partnership (PPP) agreements for certain airports impose restrictions on such cross-holdings.

Moitra, a vocal critic of the conglomerate, seized on the contradiction. "The Adani Group is lying brazenly to stock exchanges and the public," she said in a statement, demanding a probe into the group's disclosures.

Adani's denial vs. AAI waiver request

The Adani Group, which operates several airports including Mumbai, Ahmedabad, and Lucknow, had earlier dismissed reports of an airline launch as "baseless and speculative." Yet, the government's disclosure reveals that AAI received a formal request seeking relaxation of contractual curbs that prevent airport operators from holding stakes in airlines.

This waiver request, if granted, would clear the way for an airport operator to own an airline, potentially reshaping India's aviation market. The government's response suggests the request is under consideration, though no decision has been made public.

What the rules say

Under current PPP agreements, operators of privatised airports are barred from cross-holding with airlines to ensure fair competition and prevent monopolistic practices. These clauses were designed to keep airport operations neutral, especially when multiple carriers use the same facility.

The government's clarification that "airport operators are free to own airlines" applies broadly, but the contractual restrictions on specific facilities remain. This legal nuance has now become the crux of the political and corporate debate.

Industry watchers weigh in

Aviation analysts note that if the Adani Group were to enter the airline segment, it would mark a major shift in India's aviation landscape. The group already controls a significant share of airport infrastructure, and adding an airline would create a vertically integrated model—something the PPP agreements were designed to prevent.

Moitra's allegations add to the scrutiny on the conglomerate, which has faced repeated questions over its disclosures and business practices. The stock exchanges have yet to comment on whether they will seek clarification from the Adani Group on the matter.

Neither the Adani Group nor the Ministry of Civil Aviation has responded to Moitra's specific allegations. The group's shares remained volatile in Monday's trading session, reflecting investor uncertainty.

What happens next

The government's disclosure puts the ball in the court of both the Adani Group and the regulators. If the AAI waiver is granted, it could trigger a wave of consolidation in Indian aviation. For now, all eyes are on the group's next communication to the stock exchanges, and whether the Securities and Exchange Board of India (SEBI) takes cognisance of the alleged discrepancy.