Male has authority to take back airport from GMR: S'pore court

In yet another setback to embattled Indian infrastructure major GMR, a Singapore court today ruled that the Maldives Government can take back the Male International Airport from the private firm.

A tourists walk past a banner at the international airport in Male, Maldives, Tuesday, Dec. 4, 2012. An airport deal to build and run a new terminal at Male airport, and to operate the entire airport for 25 years has been terminated amid a feud over political control of the Maldives. In 2010, under the government of former president Mohamed Nasheed, GMR Infrastructure and Malaysia Airports Holdings submitted the winning bid and took over the airport's operations from Maldives Airport Co. the same year. AP

"Singapore Court of Appeal has passed judgement that the Maldives Government has the authority to take back the airport," Maldives President Mohamed Waheed's Press Secretary Masood Imad said in Male.

He further said, "Maldives will go ahead with the transfer as scheduled". Maldives had in a surprise move on November 27 terminated the over USD 500 million contract awarded to GMR during the previous regime of Mohamed Nasheed to upgrade its Male airport and to build a new terminal.

The government had said it was terminating the contract because it was signed under "dubious conditions" and was void, a charge hotly contested by the infrastructure major.

Following the termination, GMR had approached the Singapore High Court which had stayed the scrapping of contract. However, the Maldives government remained defiant and asserted that it would take over the airport from GMR on Saturday, a day after the notice period ends.

After today's ruling, Imad told PTI, "We are not doing anything against the law. We are just following the law. Now, even the Singapore court has given us the permission to go ahead".

As per the project contract, in case of any differences between parties, the law of either Singapore or UK would apply.

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