GMR claims $803 mn damages for termination of Male airport contract

  • PTI, Hyderabad
  • Updated: Nov 21, 2014 22:39 IST

GMR Male’ International Airport Private Limited (GMIAL), a subsidiary of GMR Infrastructure Limited (GMR), has claimed $803 million (Rs 4,987 crore) from the Maldivian government for ‘wrongfully’ terminating the international airport contract in the Maldives’ capital, Male.

According to filing with bourses, the Indian infra major said, a plea has also been made to the Arbitral Tribunal in Singapore for award of further damages for loss of reputation caused to GMR as a consequence of wrongful repudiation of the Concession Agreement.

“Following the aforesaid award, GMIAL has submitted its claim for damages amounting to $803 million (Rs 4,987 crore)...The quantification of the damages is subject to expert evidence,” it said.

GMR entered into a Concession Agreement with government of Maldives and Maldives Airport Company Limited (MACL) for modernisation and operation of Ibrahim Nasir International Airport (INIA) in 2010.

However, difference cropped up between both the parties and the then Maldivian Government terminated the concession agreement and took over control of the airport operations of INIA.

“The Concession Agreement was wrongfully repudiated by the government of the Island nation and MACL, and on November 29, 2012 arbitration proceedings were initiated by the government and MACL themselves seeking a declaration that the Concession Agreement was void ab initio,” GMR said.

also read

Passwords compromised in majority of debit card fraud transactions
Show comments