Section 25
Allocation of surplus funds.
The Airports Authority of India Act, 1994
About this Act
An Act to provide for the constitution of the Airports Authority of India and for the transfer and vesting of the undertakings of the International Airports Authority of India and the National Airports Authority to and in the Airports Authority of India so constituted for the better administration and cohesive management of airports and civil enclaves whereat air transport services are operated or are intended to be operated and of all aeronautical communication stations for the purposes of establishing or assisting in the establishment of airports and for matters connected therewith or incidental thereto.
(1) The Authority may, from time to time, set apart such amounts
as it thinks fit as a reserve fund or funds for the purpose of expanding existing facilities or services or
creating new facilities or services at any airport, civil enclave, heliport or airstrip or for the purpose of
providing against any temporary decrease of revenue or increase of expenditure from transient causes or
for purposes of replacement or for meeting expenditure arising from loss or damage from fire, cyclone,
air-crash or other accident or for meeting any liability arising out of any act or commission in the
discharge of its functions under this Act:
Provided that without prejudice to the right of the Authority to establish specific reserves for one or more specific purposes, the Authority shall also have the power to establish a general reserve:
Provided further that the sums set apart annually in respect of each or any of the specific and general reserves and the aggregate at any time of such sums shall not exceed such limits as may, from time to time, be fixed in that behalf by the Central Government.
(2) After making provision for such reserve fund or funds and for bad and doubtful debts, depreciation in assets and all other matters which are usually provided for by companies registered and incorporated under the Companies Act, 1956 (1 of 1956) the Authority shall pay the balance of its annual net profits to the Central Government.
Provided that without prejudice to the right of the Authority to establish specific reserves for one or more specific purposes, the Authority shall also have the power to establish a general reserve:
Provided further that the sums set apart annually in respect of each or any of the specific and general reserves and the aggregate at any time of such sums shall not exceed such limits as may, from time to time, be fixed in that behalf by the Central Government.
(2) After making provision for such reserve fund or funds and for bad and doubtful debts, depreciation in assets and all other matters which are usually provided for by companies registered and incorporated under the Companies Act, 1956 (1 of 1956) the Authority shall pay the balance of its annual net profits to the Central Government.