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India’s GMR seeks $1.4bn compensation from Maldives
June 22, 2013, 2:53 am

Workers walk past a banner at the international airport in Male, Maldives, Tuesday, Dec 2012. (AP Images)

Workers walk past a GMR banner at the international airport in Male, Maldives, Tuesday, Dec 2012 [AP Images]

Indian infrastructure major GMR has sought a compensation of $1.4 billion from Maldives for the “wrongful termination” of its 25-year contract to develop and operate the Male International Airport.

The claim was filed before an Arbitration Court in Singapore on Friday, and a final order in the matter is likely to come out by the end of March next year.

The figure of $1.4 billion was reached after taking into account loss of profit, payments made to sub-contractors besides others.

The over $500 million airport project contract awarded to GMR for modernising and operating the Ibrahim Nasir International Airport (INIA), signed in 2010 during the previous regime of Mohamed Nasheed, was “unilaterally” terminated by the present government on November 27 last year.

The airport was taken over by the Maldives Airports Company Limited after a high-voltage legal tussle in which GMR had initially got a stay order on the termination from the Singapore High Court.

GMR Infrastructure has interests in airports, power and roads. The Company is developing a greenfield international airport at Hyderabad, and is also operating, managing and developing the Delhi airport in the Indian capital city.

Source: Agencies