GMR has claimed $803 million or around Rs4,987 crore from Maldivian government for ‘wrongfully’ terminating its contract for Ibrahim Nasir International Airport
GMR Male International Airport Pvt Ltd (GMIAL), a subsidiary of GMR Infrastructure Ltd (GMR), has claimed $803 million (around Rs4,987 crore) from the Maldivian Government for ‘wrongfully’ terminating the international airport contract.
In a regulatory filing, GMR said, in addition to that, a plea for award of further damages for loss of reputation caused to the company 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 $803 million (Rs4,987 crore)...The quantification of the damages is subject to expert evidence,” it said.
GMR had entered into a concession agreement with the Government of Maldives and Maldives Airport Company Ltd (MACL) for modernisation and operation of Ibrahim Nasir International Airport (INIA) in 2010.
However, differences 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 29 November 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 18 June 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 the losses caused by their wrongful repudiation of the concession agreement, it further said.