The regulator wants DIAL to directly provide non-aeronautical services.
In a letter sent to the civil aviation ministry, AERA has asked the ministry to ensure DIAL runs the operations by itself.
Non-aeronautical revenues at Delhi airports constitute 60 per cent of total revenues.
They include revenues from food outlets, duty-free operations, parking, cargo and others.
"AERA has written to us the airport operator's revenue has come down because of the formation of joint ventures for non-aero services, where there is a revenue share.
"It has said the fall would lead to an increase in airport charges," said a senior ministry official, who did not wish to be named.
For fixing charges that airlines are required to pay (like for landing and parking), the regulator takes into consideration the total aeronautical revenue and 30 per cent of the non-aeronautical revenue earned by the airport.
As DIAL has most of these operations through JVs, it has to share revenue with partners.
As a result, the revenue accrued in the airport operator's account is much lower than what would have been if it ran the operations on its own.
DIAL has formed 11 JVs to manage food outlets, duty-free shops, advertising, parking, ground handling, cargo and information technology.
The equity shareholding of DIAL in the JVs ranges from 26 to 56 per cent and the revenue share agreed ranges from 10 to 61 per cent of gross revenue generated.
DIAL, in its reply, said it was a global practice for airport operators to participate in JVs with concessionaires due to certain inherent advantages such as business continuity and the desired quality.
"Considering these facts, the bidding document had a provision in respect of the airport operator's right to participate in the JVs formed for the purpose of carrying out any aeronautical, non-aeronautical
Delhi HC blast: HuJI email traced to J&K
Kingfisher owes over Rs 200 cr to AAI
Is 'Group Buying' a good way to buy your home?
Mumbai airport: It's growth versus slum-dwellers!
AAI defends joint venture deals at Delhi airport