DGCA Standardization of Surveillance Findings and Introduction of Level-III Observations

Mar 20, 2026 | by TeamLease RegTech Legal Research Team

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Industry Specific ComplianceThe Directorate General of Civil Aviation (DGCA) on January 6, 2026 issued a circular to standardize the classification of surveillance findings and enhance aviation safety oversight in alignment with ICAO Annex 19. The circular addresses inconsistencies in existing Level-I (significant) and Level-II (moderate) findings and introduces a new Level-III category for general observations aimed at continuous improvement without triggering enforcement action.

DGCA will establish a centralized Surveillance Finding Classification Database integrated with the eGCA system to ensure consistent categorization based on risk levels. A technical committee comprising DGCA officials and industry experts has been constituted to develop a standardized taxonomy, severity matrix, and review mechanisms. The framework distinguishes clearly between Level-I, Level-II, and Level-III findings, improving traceability, audit quality, and regulatory clarity.

Level-III observations are advisory in nature, do not indicate regulatory non-compliance, and require no formal response from operators. They highlight best practices, minor inconsistencies, and improvement areas for organizations. DGCA has outlined timelines for implementation, including database development and training, and emphasized alignment with global safety standards to strengthen India’s aviation oversight system. 

[Circular No.: 1/2026]


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