Serious consequences if legal course not followed: India to Maldives

Dec 05 2012, 19:42 IST
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India has conveyed to Maldives that the matter should be addressed legally. (Reuters) India has conveyed to Maldives that the matter should be addressed legally. (Reuters)
SummaryIndia has conveyed to Maldives that the matter should be addressed legally.

government did not challenge the order of a local court which had termed the proposal to levy Airport Development Charge as "tax", which is prerogative of the government only. This was the root cause of the controversy that led to cancellation of the contract.

Not sure whether ADC amounted to taxation, India feels a way out on this could have been exempting Maldivian nationals from the charge of USD 25 per internationally departing passenger.

This offer was, in fact, made by GMR before the contract was cancelled but it was not considered by the Maldivian government.

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