Introduction.
The Bharatiya Vayuyan Vidheyak, 2024, passed by the Indian Parliament on December 5, 2024, represents a transformative step in reshaping India’s civil aviation regulatory framework. This legislation replaces the Aircraft Act of 1934, a law that had served as the cornerstone of India’s aviation regulations for nearly nine decades. With significant advancements in aviation technology, increased air traffic, and the entry of private sector airlines, the need for an updated, comprehensive legal structure became evident. The Bharatiya Vayuyan Vidheyak, 2024 is designed to address these contemporary challenges by providing a more robust and modernized regulatory framework that ensures safety, security, and efficient management of the aviation industry.
The Bill preserves many core provisions from the original Aircraft Act, which governed various aspects of civil aviation, including aircraft manufacturing, operation, and trade. However, it also introduces vital updates to align with the rapidly evolving global aviation standards. These updates include expanded powers for regulatory bodies such as the Directorate General of Civil Aviation (DGCA), the Bureau of Civil Aviation Security (BCAS), and the Aircraft Accident Investigation Bureau (AAIB), as well as stronger penalties for offenses like dangerous flying, carrying prohibited goods in aircraft, and compromising airport security. These measures reflect India’s commitment to meeting international standards and maintaining safety and security in a growing aviation market.
At the same time, the Bill raises several concerns, particularly regarding governance and regulatory independence. The Bharatiya Vayuyan Vidheyak continues to place the DGCA and other bodies under the direct supervision of the central government, in contrast to independent regulatory bodies seen in other sectors like telecommunications and insurance. Furthermore, provisions allowing the government to unilaterally appoint arbitrators in compensation disputes and to specify criminal penalties for certain offenses have sparked debates over their potential conflict with constitutional principles, particularly the right to equality and the separation of powers
The Need for Change.
The Indian aviation industry has undergone significant changes since the Aircraft Act, 1934, was enacted. At the time, the sector was largely controlled by the government, and the regulatory framework reflected this. However, since the liberalization of India’s economy in the 1990s and the opening up of the aviation sector to private players, there has been a growing need for modern regulations to support a thriving and competitive aviation sector. Several key factors contributed to the need for reform:
- Private Sector participation & market Growth-
While the entry of private airlines in 1994, India’s aviation industry experienced rapid growth. The number of commercial flights increased, and the sector attracted substantial foreign and domestic investments. This expanded market demanded a more modern and flexible regulatory framework that could accommodate both private and public sector players.
- Technological Advancement-
Since the 1930s, there have been significant advancements in aviation technology, including the development of more advanced and safer aircraft, digital navigation systems, and new types of airspace management. The existing Aircraft Act, which was based on early aviation technology, no longer sufficiently covered the modern landscape of aircraft design, operation, and regulation.
- Increased Air Traffic & Global Integration
India has seen an explosion in air traffic, with millions of passengers traveling on domestic and international flights every year. As the country integrates more deeply into the global economy, the aviation sector plays a critical role in supporting business, tourism, and international trade. Consequently, stronger regulation and improved safety standards have become necessary to ensure that India remains a competitive player in the global aviation industry.
- Evolving Safety & Security Standards
The regulatory environment must adapt to global aviation safety standards. India is a signatory to international conventions, including the 1944 Convention on International Civil Aviation, which sets standards for safety, airworthiness, and security. The Bharatiya Vayuyan Vidheyak, 2024, incorporates provisions to regulate aircraft design and operation in line with these international standards.
Salient Features.
The Bharatiya Vayuyan Vidheyak, 2024, represents a significant evolution of India’s aviation law. Below, we examine the Bill’s salient features that define its scope, structure, and enforcement mechanisms.
- Establishment of Key Regulatory Bodies:
The new act will retain the key regulatory structure set out in the 1934 Act, which includes three primary authorities like- Directorate General of Civil Aviation (DGCA) will continue to play a central role in overseeing civil aviation safety. It will regulate flight operations, monitor airworthiness, issue licenses, and ensure compliance with aviation safety standards. Bureau of Civil Aviation Security (BCAS) will oversee security at airports and within the aviation system, ensuring compliance with international aviation security protocols and addressing emerging threats and Aircraft Accident Investigation Agency (AAIB) remains tasked with investigating aircraft accidents and incidents, a critical function for ensuring accountability and improving the safety of India’s aviation sectors.
While these bodies will continue to operate under the supervision of the central government, the Bill gives the government the power to issue directions, modify decisions, and review their orders. Furthermore, the Bill allows appeals to be made to the central government against decisions made by the DGCA & BCAS.
- Regulatory Powers over Aircraft Design & Operation:
One of the key updates in the Bharatiya Vayuyan Vidheyak, 2024, is the expanded scope of regulation. Not only does the Bill retain provisions governing the manufacturing, possession, and trade of aircraft, but it also includes the regulation of aircraft design. This reflects the rapid technological advances in aviation and the need to ensure that all aircraft operating within India’s airspace meet the highest safety standards. By giving the central government the authority to make rules for the regulation of air transport services, licensing, certification, and inspections, all aimed at maintaining the safety and security of civil aviation in India.
- Offences & Penalties:
It introduces stricter penalties for several key offenses, including dangerous flying, carrying prohibited goods (such as arms and explosives) on aircraft, and violating airport security regulations, such as depositing waste or slaughtering animals near airports. These offenses are punishable by imprisonment for up to three years and fines up to Rs. 1 crore, or both. Additionally, it adds a provision for a second level of appeal for penalties imposed for violations, offering more opportunities for individuals to contest decisions.
- Empowering the Central Government:
It empowers the central government to determine civil and criminal penalties for violations of various provisions related to aircraft design, operation, and safety, as well as security and accident investigations. However, this broad discretionary power has raised concerns about potential overreach and the impact it may have on the principle of separation of powers. The central government can now unilaterally prescribe criminal penalties through the rules, a provision that some argue could undermine the role of the judiciary in determining punishment for crimes.
- Arbitration Mechanism for Compensation Disputes:
In cases where compensation disputes arise—such as in land acquisition for airport development—the Bill retains provisions that allow the government to appoint an arbitrator to resolve disputes. However, this provision has been controversial, as the Supreme Court has ruled that unilateral appointment of an arbitrator by one party is a violation of the right to equality under Article 14 of the Indian Constitution. The Bill’s decision to exempt these disputes from the Arbitration and Conciliation Act, 1996 raises concerns about the fairness of the arbitration process. Critics argue that the absence of mutual consent in appointing an arbitrator could compromise the impartiality of the proceedings.
Key Highlights.
While the Bharatiya Vayuyan Vidheyak, 2024, brings much-needed reforms to the civil aviation sector, several issues have emerged regarding governance and regulatory independence. Unlike other sectors such as telecommunications, electricity, and insurance, where independent regulatory bodies have been established, the DGCA continues to function under direct government control. This lack of independence is seen as a key issue, as it raises concerns about potential government influence in regulating the aviation sector, which has a significant private sector presence. India’s experience with independent regulators in sectors like telecom has shown that such bodies helps ensure fair competition and efficient service delivery. The absence of an independent regulator in aviation may result in bureaucratic inefficiencies and inconsistent policies that could hinder the growth of the industry.
The new bill allows the government to unilaterally appoint an arbitrator for compensation disputes contradicts the principles of impartiality and fairness. As mentioned earlier, the Supreme Court has ruled that such unilateral appointments violate the right to equality under Article 14. Critics argue that this provision undermines the judicial independence of the arbitration process and raises doubts about the fairness of compensation determinations.
Lasty, the bill grants the central government significant discretion in determining criminal penalties for aviation-related offenses. This raises concerns about the violation of the principle of separation of powers, which holds that only the legislature should define criminal offenses and penalties. The executive’s ability to impose such penalties through delegated rules may lead to arbitrary enforcement and undermine the legal predictability of the aviation sector.
The Path Forward
The Bharatiya Vayuyan Vidheyak, 2024, represents a significant step toward modernizing India’s civil aviation laws. It expands the regulatory framework to include the design of aircraft, introduces stricter penalties for aviation-related offenses, and retains the important role of the DGCA, BCAS, and AAIB. However, the Bill’s provisions regarding government control over regulatory bodies, the unilateral appointment of arbitrators, and discretionary powers for imposing criminal penalties raise valid concerns about the balance of power and fairness in the legal Framework. As India continues to expand its aviation industry, it is essential that the regulatory framework evolves in a way that fosters growth, ensures safety, and upholds principles of fairness and transparency. Addressing the concerns raised by critics of the Bharatiya Vayuyan Vidheyak, 2024 will be crucial in ensuring that the new law serves the best interests of both the aviation sector and the public at large.
However, to truly unlock the full potential of India’s aviation industry, the government must address concerns about the independence of regulatory bodies, the delegation of powers to the executive, and the fairness of arbitration processes. Only by addressing these issues can India create a regulatory environment that fosters growth, transparency, and trust within the aviation sector.