Male govt rejects Singapore court order on GMR
The Maldivian government says where compensation is adequate, no injunction can be issued as per the laws of Singapore and the UK. It said that since the Maldivian government has initiated the arbitration process, GMR would be compensated.
The new Maldives government has alleged that the previous dispensation favoured the private company by allowing it to levy development fee and insurance charges of $27. GMR has said that as per their terms of agreement, it was entitled to charge the ADC of $27 per international passenger from January 1 , 2012. However, this was 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 in its letter on January 5, but retracted from the commitment after March 31 and asked it to refund the adjusted payments.
According to Maldives, the terms of the agreement agreed upon by the previous government would have made it pay GMR rather than earn revenues from it. It has been suggested that the Maldivian government would have had to shell out around Rs 2,800 crore over 25 years as per this agreement.
The airport project means a lot for the GMR group financially because it is profitable. Since Male is the gateway to Maldives, a major tourist destination, it would provide for a healthy revenue stream. As
Be the first to comment.