Under Section 39(1), the Central Government may supersede the Authority for a period not exceeding six months on any of THREE specified grounds, one of which is that the Authority has persistently made default in complying with directions issued by the Central Government AND, as a result, the financial position of the Authority or the administration of any airport has:

Section 39(1)(b) specifically requires TWO conjunctive elements for this particular supersession ground: (i) persistent default by the Authority in complying with Central Government directions or in discharging its statutory functions/duties, AND (ii) as a RESULT of that default, DETERIORATION in the Authority's financial position or in the administration of any airport/heliport/airstrip/civil enclave/aeronautical communication station - not improvement beyond projections, mere stagnation, a special CAG audit referral, or Parliamentary Committee criticism, none of which by themselves satisfy this specific statutory trigger. The other two independent grounds under clauses (a) and (c) - grave emergency preventing function discharge, and general public interest - do not require this deterioration-causation link at all.