GMR Infra moves court against Maldives govt

Written by fe Bureau | Bangalore | Updated: Dec 2 2012, 04:16am hrs
GMR Infrastructure on Friday moved court in Singapore against the Maldives governments recent decision to terminate its concession agreement to develop the Male international airport.

GMR has sought an interim injunction on the governments decision, contending that the termination of agreement cannot be called void and that interpretation of the Maldives government was incorrect, according to an official.

The hearing has been adjourned to Monday, the official said. The Maldives government had given GMR Male International Airport (GMIAL) seven days to hand over possession of the Ibrahim Nasir International airport after it axed the contract on Tuesday on the grounds that it was void. GMIAL is already pursuing a separate arbitration case at the Singapore High Court relating to its dispute with the Maldives government over collection of an airport fee, a case that precedes the termination of the concession.

According to sources, the lenders consortium led by Axis Bank has the option of taking the legal route to recover the debt extended to the project. The consortium, which initiated the process to recover the project debt, has sent relevant documents to the Maldives government.

When contacted, Axis Bank MD and chief executive Shikha Sharma declined to comment on the development, saying its a legal issue.