Infra Giant GMR Files Damage Suit Worth Rs 5000 Cr Against The Govt Of Maldives

Infrastructure giant GMR Infrastructure Limited made a damage claim worth Rs 4,987 crore ($803 million) against the government of Maldives (GoM) and Male Airports Company Limited (MACL). The conglomerate made this claim through its subsidiary GMR Male International Airport Private Limited (GMIAL).

“We have submitted a damage claim against the government of Maldives for wrongful repudiation of the Concession Agreement for Maldives International Airport,” said a senior official from the company.

He added that the company has also made a disclosure of the same to Indian bourses on November 21, 2014. “The said concession agreement was repudiated by GoM and MACL and on 29^th November 2012. The arbitration proceedings were initiated by GoM and MACL themselves seeking a declaration that the Concession Agreement was void ab initio. The Arbitral Tribunal, by its award dated 18th June 2014, ruled that the said 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 Concession Agreement,” stated the letter dated November 21, 2014 sent to National Stock Exchange.

The company has also made a plea for further damages for loss of reputation caused to GMR because of the cancellation of the agreement. “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,” added the letter.

Image: GMR Group
It should be noted that the company had entered into a 25 year concession agreement with the government of Maldives for the purpose of modernizing and operating the airport through its subsidiary GMIAL in 2010.