GMR says Maldives govt, aviation agency liable to pay damages

Tags: GMR, News
The GMR Group, which had to exit the Male airport project, today said a tribunal has declared the Maldivian government and the nation's airport agency "jointly and severally liable in damages" to the company for loss caused by the wrongful repudiation of the agreement.

GMR Male International Airport Ltd (GMIAL), a unit of GMR Infrastructure, had entered into a concession agreement with the government of Maldives and Maldives Airport Co for modernisation and operation of Ibrahim Nasir International Airport in 2010.

The contract was unilaterally terminated by the Maldives government, which initiated arbitration proceedings on November 29, 2012, seeking a declaration that the concession agreement was void ab initio, GMR said in a statement today.

"Government of Maldives and Maldives Airport Co. Ltd are jointly and severely liable in damages to GMIAL for loss caused by wrongful repudiation of the agreement as per the concession agreement," GMR Infrastructure said in the filing, citing the arbitration awarded by Rt Hon Lord Hoffman's Tribunal.

The concession agreement was valid and binding and was not void and the collection of airport development charges and insurance surcharge, as allowed in the concession agreement, was lawful under Maldivian law, GMR cited the tribunal as saying.

The agreement to adjust the shortfall arising out of non-collection of airport development charges and insurance surcharge from the concession fee was lawful and binding on the Maldives Airport Company and Maldivian government, GMR said, quoting the award.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The NDA government would do well to keep its economic focus in place

    It is as if the worst horrors conjured by liberal secularists about India’s prime minister could be finally coming true.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Taslima Nasrin

Religious conversion as fundamental right

Tricks and treats, coercion, threats, manhandling and extermination are the ...

Purnendu Ghosh

Does speed liberate or enslave humans?

Speed is the reflection of modernity and modernisation. Speed is ...

Shona Adhikari

Why Indian art auctions are here to stay

With Christie’s second India sale just over in Mumbai, we ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture