Male project in June 2010 for a concession period of 25 years during the tenure of former president Mohamed Nasheed, who was ousted in a coup in February 2012.
The new Maldives government has alleged that the previous government favoured the private company by allowing it to levy development fees and insurance charges of $27.
GMR has said that as per their terms of agreement it was entitled to charge the airport development charge of $27 per international passenger from January 1, 2012. However, this had been disallowed by a Maldivian civil court in December 2011. GMR had subsequently written to the government that it would adjust the shortfall due to non-collection of ADC from the annual payable concession fee. The Maldivian government agreed to it vide its letter on January 5 but retracted from the commitment after March 31 and asked it to refund the adjusted payments.
Meanwhile, Maldivian President Mohamad Waheed hoped that the decision would not affect bilateral ties with India as the Male airport development contract signed by his predecessor Mohamed Nasheed's government was “void ab initio”.