GMR Infrastructure on Friday said it has submitted a claim for $803 million (Rs 4,987 crore) in the ongoing arbitration proceedings over the abrupt termination of the Maldives airport concession by the island nation in 2012. The infrastructure company, through its subsidiary GMR Male International Airport Private (GMIAL), is also claiming further damages for loss of reputation caused to it, though it did not indicate any amount.
In June, an international arbitration tribunal had ruled in favour of the infrastructure developer with an order saying the concession was valid and that the Maldives government was liable to damages. The ruling held that collection of an airport development charge (ADC) — the key issue of the dispute between the two parties — was lawful under Maldivian law.
“Following the aforesaid award, GMIAL has submitted its claim for damages amounting to $803 million (Rs 4,987 crore). 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,” the company said in a disclosure to the Bombay Stock Exchange.
The disclosure was made to confirm with regulatory requirements despite the arbitration proceedings being private and confidential, it said. GMR Infrastructure recently also filed a Draft Letter of Offer with Sewi and the stock exchanges for a proposed rights issue of its equity shares.
In 2010, GMR won a 25-year concession to operate and expand the Ibrahim Nasir International Airport in the Maldives’ capital city of Male with a $529-million bid. But a new government, which came into office following a coup in 2012, opposed the collection of the ADC and a local court subsequently disallowed the charge.