The President of India Droupadi Murmu gave assent to the Bharatiya Vayuyan Vidheyak, 2024 on December 11, 2024 in a bid to enhance the ease of doing business within the rapidly expanding aviation sector. The Vidheyak was passed in the Rajya Sabha through a voice vote on December 5, 2024, following its approval by the Lok Sabha on August 9, 2024.
The new act aims to eliminate redundancies and replace the Aircraft Act of 1934, which has been amended 21 times. The change in the name of the act from English to Hindi was made to reflect India’s heritage and culture.
Background
The civil aviation sector in India was governed by the Aircraft Act, 1934, and the Airports Economic Regulatory Authority of India Act, 2008. The 1934 Act oversaw various civil aviation activities and airport licensing, while the 2008 Act established an independent authority to regulate tariffs for aeronautical services at airports and monitor airport performance standards.
The Aircraft Act of 1934 was amended in 2020 to officially recognise the (i) Director General of Civil Aviation (DGCA), responsible for regulatory functions and safety oversight; (ii) Bureau of Civil Aviation Security (BCAS), which handles security; and (iii) Aircraft Accidents Investigation Bureau (AAIB), which investigates accidents.
In August 2013, the Civil Aviation Authority of India Bill, 2013, was introduced to establish an independent safety regulator, but it lapsed with the dissolution of the 15th Lok Sabha. Thereafter, the Bharatiya Vayuyan Vidheyak, 2024 was introduced in the Lok Sabha on July 31, 2024 to replace the 1934 Act while preserving the regulatory framework established under it.
Some Key Features of the Act
The act simplifies regulatory provisions and updates regulations to address the current needs of the civil aviation. The 2024 Act is structured with provisions organised chapter-wise and section-wise. The text has been revised to ensure gender neutrality.
New definitions New definitions for terms like design, manufacture, and maintenance have been introduced. These changes are aimed at promoting the Government’s Make in India and Atmanirbhar Bharat initiatives. This will help regulate key aspects of maintenance, including the growing maintenance, repair, and overhaul sector, and support the development of aircraft manufacturing within India.
Ease of doing business The act also includes provisions to promote ease of doing business, such as centralising the issuance of Radio Telephony Restricted (RTR) certificates, which were previously handled by the Department of Telecommunications, under the DGCA. In addition, inconsistencies in provisions related to appeals, compounding amounts, and exemption powers have been removed.
Authorities The 1934 Act establishes three authorities: (i) DGCA, (ii) BCAS, and (iii) AAIB. The central government has overall supervision over these bodies and could issue directives and review their decisions. The new act keeps these provisions intact and adds that appeals against the decisions of DGCA or BCAS could be made to the central government with no further appeal allowed. Further, the authority to issue the Radio Telephone Operator (Restricted) Certificate and licence has been transferred from the Department of Telecommunication to the DGCA. This streamlines the licensing process by centralising it under a single authority, namely, the DGCA.
Regulation of design of aircraft The 1934 Act regulates activities related to aircraft, such as manufacturing, use, operation, and trade. The 2024 Act keeps these provisions and, additionally, grants to regulate the design of aircraft.
Power to make rules The 1934 Act gives the central government the authority to create rules on various matters including (i) regulation of specific activities related to aircraft, licensing, certification, and inspection; (ii) regulation of air transport services; and (iii) implementation of the 1944 Convention on International Civil Aviation. The 2024 Act maintains these provisions and adds that the central government may also create rules regarding radio telephone operator certificates and licences under the International Telecommunication Convention.
Offences and penalties The 2024 Act outlines several offences and corresponding penalties. Offences such as (i) violating rules related to the carriage of prohibited goods like arms and explosives in aircraft; (ii) flying an aircraft in a way that endangers people or property; and (iii) failing to comply with the directions of DGCA and BCAS would be punishable with up to two years of imprisonment, a fine of up to one crore rupees, or both. Violating rules that prohibit the slaughtering of animals or depositing waste near airports would result in imprisonment for up to three years, a fine of up to one crore rupees, or both.
The new act grants the central government the discretion to determine civil or criminal penalties for violations of rules related to (i) regulation of activities involving aircraft, such as design, manufacturing, use, and trade; (ii) implementation of international conventions; (iii) accident investigations; (iv) protection of public health; and (v) powers to detain aircraft. The civil penalty may include up to one crore rupees, while the criminal penalty could include imprisonment for up to two years or a fine of up to one crore rupees, or both.
Adjudication of penalties The 1934 Act allows the central government to impose penalties for violations of rules and gives it the authority to appoint an officer for adjudicating these penalties. This officer must be at least of the rank of Deputy Secretary to the Government of India. The decisions of the Adjudicating Officer could be appealed to an Appellate Officer of a higher rank. The 2024 Act retains this provision and introduces an additional level of appeal. Appeals against the decisions of the First Appellate Officer would be heard by a Second Appellate Officer, who must hold a rank higher than the First Appellate Officer.
Key Issues and Analysis
Autonomy The 1934 Act establishes the DGCA to carry out regulatory functions and ensure safety, with the DGCA headed by an officer appointed by the central government. The central government oversees the DGCA, with the power to modify or cancel its orders, and its directions are binding. The 2024 Act maintains these provisions. However, like the 1934 Act, the new act does not specify the qualifications, selection process or tenure of the director general, meaning the DGCA operates like a government department and is not independent in decision making.
Arbitration The 1934 Act grants the government the authority to issue directions for the demolition or modification of buildings, structures, or trees within a specified distance from an airport. The affected property owners are entitled to compensation, which would be determined through mutual agreement. If no agreement is reached, the government may appoint an arbitrator who must be a person qualified to be a high court judge. The new act maintains these provisions.
In 2024, the Supreme Court had ruled that allowing one party to unilaterally appoint an arbitrator violates the right to equality under Article 14 of the Constitution. The court noted that such a clause could cast doubt on the independence and impartiality of the arbitrator, essentially allowing one party to appoint a judge for its own cause. Under the Arbitration and Conciliation Act 1996, arbitrators are appointed through mutual agreement between the parties. However, the 2024 Act explicitly states that the Arbitration and Conciliation Act 1996 would not apply to arbitrations conducted under its provisions.
Discretion of penalties The 2024 Act gives the central government discretion in determining which violations should be classified as criminal offences, potentially violating the principle of separation of powers. This raises the concern of weather criminal offences and penalties should be decided by the legislature rather than delegated to the government.
Conclusion
The Bharatiya Vayuyan Adhiniyam, 2024 is a landmark piece of legislation that marks a new chapter in the evolution of India’s civil aviation industry. By modernising and simplifying regulations, supporting self-reliance, and promoting ease of doing business, it sets the stage for a dynamic and prosperous aviation sector. The new act not only addresses current challenges but also looks to the future, ensuring that India remains at the forefront of global aviation. As the sector continues to grow, this act will be pivotal in shaping the landscape of civil aviation in India in the years to come.
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