The Bill, introduced in the Lok Sabha on July 31, received the lower house's approval on August 9 and was passed by the Rajya Sabha today.

Under its provisions, regulatory authorities such as the Directorate General of Civil Aviation (DGCA), the Bureau of Civil Aviation Security (BCAS), and the Aircraft Accident Investigation Bureau (AAIB) will remain under the supervision of the Central government.

The Bill broadens the regulatory scope to include aircraft design alongside manufacturing, possession, and trade. It also introduces stricter penalties for actions jeopardizing airport security, such as unsafe flying or activities like animal slaughter or waste dumping near airport premises. Violators could face fines of up to ₹1 crore or imprisonment for up to three years.

A notable addition is the introduction of a second appeal mechanism for penalties imposed under its rules.

However, the Bill has raised concerns, as noted by PRS Legislative Research. Unlike sectors such as telecom and insurance, which have independent regulators, civil aviation continues to be overseen by the DGCA, a body under government control.

PRS also points out that the Bill allows the government to appoint arbitrators in compensation disputes, potentially conflicting with a Supreme Court judgment prohibiting unilateral arbitrator appointments under Article 14 of the Constitution. Additionally, the government’s authority to prescribe criminal penalties for violations has been flagged as potentially undermining the principle of separation of powers.