Ambiguity in DCGA norms to rescue rich & famous

By Swati Khandelwal, CNBC-TV18:

Ambiguity in the DCGA norms could come to the rescue of the rich and famous who have been flying around in their private jets. 

High fliers like Mukesh and Anil Ambani, who have come under the customs scanner for using Non-Scheduled operators permit for private use, may get some respite thanks to the Directorate General of Civil Aviation.

As per DGCA norms, a Non-Scheduled Air Transport Permit is given to operators who can conduct charter and Non-Scheduled operations for transportation of persons, mail or goods.

DGCA norms say that in such operations, the operators shall not publish their time schedules as the operations are of non-scheduled nature. Charter service is defined as an operation for hire and reward in which the departure time, departure location and arrival locations are specially negotiated with the customer. No ticket is sold to an individual passenger for such an operation.

The DGCA does not ask for any mandatory flying hours on private and commercial basis during a particular period in time and neither asks for a minimum amount to be generated as revenue for flying commercial.

This ambiguity here is what under the customs ambit are likely to be used to push their case. There is more help courtesy the air transport circular number 1 of 1998, which says that non-scheduled operators can carry employees including the Chairman and members of the Board of Directors of the company or Corporation who will be treated as passengers for international destinations.

Experts say that the DGCA should have amended its rules and regulations for non-scheduled operators after the Finance Minister imposed a 23% tax on private jets and aircraft last year.

The Customs Department has so far sent notices to various corporate entities, including the Mukesh Ambani Reliance Group, GMR, Oberoi and Indiabulls and Anil Ambani. But without data on aircarft useage, they may end up drawing a blank.