Money» GMR To Fight On As Maldives Rejects Singapore HC Order
GMR to fight on as Maldives rejects Singapore HC order
Dec 03, 2012, 17:43 PM IST
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New Delhi: Today itself the Singapore High Court had issued a stay order on the cancellation of the contract for GMR, who has been developing the Male Airport. The contract is said to be worth in excess of $511 million (Rs 2,788.7 crores), which the government of Maldives has now cancelled by taking the Male airport under its own control. After former President Mohammed Nasheed was disposed from power, under the GMR deal was signed, the new government in power has sought to cut ties with all vendors and external enterprises who were signed on during the previous regime.
Reacting to the Maldives government's stand that its decision of termination of Male airport contract to GMR-led consortium was "non-reversible and non-negotiable", CEO of GMR Male International Airport Andrew Harrison said sovereign guarantee was provided in the agreement and should be "respected". Notwithstanding a stay granted by Singapore High Court, Maldives government said the termination notice stood and it will pay a compensation to the GMR Group.