Friday 25 April 2014
News updated at 9:48 AM IST
Weather
Max: 34.6°C
Min : 22.7°C
In Bangalore
Generally cloudy

GMR seeks USD 1.4 billion in damages from Maldives

Singapore, Jun 21, 2013 (PTI):
GMR

Indian infrastructure major GMR today sought a compensation of USD 1.4 billion from Maldives for the "wrongful termination" of its 25-year contract to develop and operate the Male International Airport.

The claim was today filed before an Arbitration Court here and a final order in the matter is likely to come out by end of March next year.

According to sources, the papers for the claim runs into 75 pages besides various annexures and attachments.

The figure of USD 1.4 billion was reached after taking into account loss of profit, payments made to subcontractors besides others.


Sources said the arbitration process will go on and the Maldivian government along with the Maldivian Airport Company Limited, both parties in the suit, will give their responses.

The over USD 500 million airport project contract awarded to GMR for modernising and operating the Ibrahim Nasir International Airport (INIA), signed in 2010 during the previous regime of Mohamed Nasheed, was "unilaterally" terminated by the current government on November 27 last year.

The airport was taken over by the Maldives Airports Company Limited after a high-voltage legal tussle in which GMR had initially got a stay order on the termination from the Singapore High Court.

However, the Singapore Supreme Court ruled on November 6, a day before the notice period expired, that Maldives has the power to take over the airport on November 6.

The abrupt termination of the contract had raised tempers between India and Maldives which had till then said it will go for an amicable solution to the airport issue.

Various political parties, all coalition members of the current regime headed by President Mohamed Waheed, had carried out a series of protests and campaigns against the Indian company.

Maldivian government's stand was that the contract was terminated because it was "void ab initio"” (invalid from the outset) and hence the government does not have to bear any compensation for the termination.

Earlier this week, Maldives' anti-graft watchdog had ruled out any corruption in the leasing of the international airport to GMR.

However, the government had said, "The report does not change the government stand that the contract given by former President Mohamed Nasheed was illegal.

"The contract was not terminated on the ground that there was corruption but because it was done against the law of the land".

Go to Top

Photo Gallery
A digital image called 'Venus, 1985' created by Andy Warhol retrieved from disk 1998.3.2129.3.22...

A digital image called 'Venus, 1985' created by Andy Warhol retrieved from disk 1998.3.2129.3.22...

Crew members of Colombian-registered sailing ship Gloria stand on the ship's masts during a...

Crew members of Colombian-registered sailing ship Gloria stand on the ship's masts during a...

A rainbow appears over the sky of the city of Sao Paulo April 24, 2014. Sao Paulo is one of the...

A rainbow appears over the sky of the city of Sao Paulo April 24, 2014. Sao Paulo is one of the...

27 year old white polar bear Uslada shakes off water in her pool at the Leningrad Zoo in St...

27 year old white polar bear Uslada shakes off water in her pool at the Leningrad Zoo in St...

U.S. President Barack Obama waves from Air Force One as he departs Haneda International Airport...

U.S. President Barack Obama waves from Air Force One as he departs Haneda International Airport...

Singer-songwriter, Leslie Grace arrives at the 2014 Billboard Latin Music Awards on Thursday...

Singer-songwriter, Leslie Grace arrives at the 2014 Billboard Latin Music Awards on Thursday...

A model of a pink fisherman and bicycle are positioned on a rock in the Irish Sea near the...

A model of a pink fisherman and bicycle are positioned on a rock in the Irish Sea near the...

Actress Emma Stone arrives for 'The Amazing Spider-Man 2' premiere in New York April 24, 2014...

Actress Emma Stone arrives for 'The Amazing Spider-Man 2' premiere in New York April 24, 2014...

A girl leaps over headstones at the Jakarta War Cemetery following the ANZAC Day dawn service in...

A girl leaps over headstones at the Jakarta War Cemetery following the ANZAC Day dawn service in...

A fire-fighter walks past a school bus leaning against a eucalyptus tree after it veered off the...

A fire-fighter walks past a school bus leaning against a eucalyptus tree after it veered off the...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523