GMR says Maldives govt, aviation agency liable to pay damages

Tags: 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.

EDITORIAL OF THE DAY

  • By banning the sale of BS-III vehicles, SC has ruled in favour of public health

    Automobiles, commercial vehicles and two-wheeler manufacturers have no alternative but to comply with the Supreme Court directive of not selling BS-II

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Sandeep Bamzai

Cut & Thrust: SRK’s ALPHABET SOUP

On Saturday, the Enforcement Directorate sent a show cause notice ...

Ananda Majumdar

Power of risk in politics

A counter na-rrative appears to be emerging in the ongoing ...

Zehra Naqvi

Success lies in learning to embrace failure

Among the thronging multitudes that offer you lessons on success, ...