Hyderabad: Singapore's Changi Airport has backed out of a planned investment in the airport subsidiary of the GVK group citing regulatory uncertainty in India. Changi Airports International, a wholly owned subsidiary of the Changi Airports Group, was to invest 2,200 crore in GVK's airport subsidiary for 26% stake.
The Supreme Court's judgement on 2G spectrum also acted like a dampener. "It came like a shocker to us. Everything was working at clockwork precision until the Supreme Court announced its verdict on the 2G spectrum case," said Issac George, chief financial officer of GVK. "Though Changi has not officially written to us, they said more clarity was required on India's regulatory issues before going ahead with the investment."
Several calls made to Changi airport remained unanswered.
This is one of the first instances of a major foreign investor fleeing India on the back of regulatory uncertainty.
21/04/12 Deepika Amirapu/Economic Times
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