GMR claims $803 mn for termination of Male Airport contract
GMR Male' International Airport Private Limited (GMIAL), a subsidiary of GMR Infrastructure Limited (GMR), has claimed $803 million (around Rs 4,987 crore) from the Maldivian government for 'wrongfully' terminating the international airport contract in that country's capital.business Updated: Nov 21, 2014 11:59 IST
GMR Male' International Airport Private Limited (GMIAL), a subsidiary of GMR Infrastructure Limited (GMR), has claimed $803 million (around Rs 4,987 crore) from the Maldivian government for 'wrongfully' terminating the international airport contract in that country's capital.
According to filing with bourses, the Indian infra major said, in addition to that, a plea for award of further damages for loss of reputation caused to GMR as a consequence of wrongful repudiation of the Concession Agreement has also been made to the Arbitral Tribunal in Singapore.
"Following the aforesaid Award, GMIAL has submitted its claim for damages amounting to USD 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.
The Arbitral Tribunal, by its Award dated June 18, 2014, ruled that the said Concession Agreement was valid and binding and that Maldivian Government and MACL were jointly and "severally" liable in damages to GMIAL for loss caused by their wrongful repudiation of the Concession Agreement, it further said.
First Published: Nov 21, 2014 11:56 IST