GMR seeks damages of $803 mn and more from Maldives
21 Nov 2014
India's GMR Infrastructure Ltd said today that its subsidiary GMR Male International Airport Pvt Ltd (GMIAL) has claimed damages amounting to $803 million (Rs4,987 crore) from the Maldivian government for ''wrongfully'' terminating the Male international airport contract.
In addition, a plea for award of further damages for loss of reputation caused to GMR as a consequence of wrongful repudiation of the concession agreement has also been made to the Arbitral Tribunal, the quantification of which is subject to expert evidence, the company said.
GMAIL has entered into a concession agreement with the government of Maldives and Maldives Airport Co Ltd (MACL) for modernisation and operation of Ibrahim Nasir International Airport in 2010. The concession agreement was wrongfully repudiated by Maldives and MACL and on 29 November 2012, arbitration proceedings were initiated by Maldives government and MACL themselves seeking a declaration that the concession agreement was void ab initio, according to a GMR statement.
The Arbitral Tribunal, by its award on 18 June 2014, ruled that the concession agreement was valid and binding and that GoM and MACL were jointly and severally liable in damages to GMIAL for loss caused by their wrongful repudiation of the Concessions Agreement.
Following this award, GMIAL has submitted it claim for damages for $803 million, the company added.