New Delhi: The GMR Group is considering legally challenging in a Singapore court the Maldives Government decision to terminate its contract for modernising the Male airport.
The decision to approach courts in Singapore was taken as the contract for modernisation of the Male airport states that arbitration can take place either under Singaporean or British laws, sources said.
A GMR team is in Singapore and the legal process could begin in the next seven days, sources said. Late on Tuesday, the Maldives Cabinet recommended termination of the contract awarded to the GMR Group to develop the Male airport.
In 2010, GMR Male International Airport Private Limited (GMIAL) won the right to build and operate the Ibrahim Nasir International Airport for 25 years, extendable by 10 years. GMR Infrastructure holds majority stake in GMIAL.
Sources claimed the Maldivian Government’s letter terminating the contract was a “weak one”. The bone of contention is GMR’s decision to levy a departure fee of $25 per passenger on those using the airport.
28/11/12 Business Line
