GMR to seek $800 million as compensation

GMR has decided to seek compensation for the cancellation of the agreement between GMR Male’ International Airport (GMIAL) and Male’ Airports Company Limited (MACL).

GMIAL is a joint venture company comprising GMR Infrastructure Limited (GIL) and Malaysia Airports Holding Berhad (MAHB).

Indian newspaper Economic Times (ET) reported that the company is seeking compensation for amounts exceeding $800 million.

ET has reported a top GMR official as saying, requesting anonymity, that they feel that they were fooled and cheated and that the information in the contract about the Airport Development Charge (ADC) being illegal was suppressed from them, and that this is going to be their stance in the international arbitration tribunal, where the first hearing over ADC will take place soon.

ET also reported GMR to have said that they "feel cheated" for having the contract cancelled over an illegal component - airport development charge - present in it, which they were not aware of.

"The estimated compensation that GMR would seek from the Maldives government would be upwards of $800 million. We will discuss with our lawyers and work out a legal strategy. We will also continue to keep the government updated on various issues and seek appropriate support at the right time," GMR (Airports) CFO SidharathKapur is reported to have told ET.

GMR has not yet disclosed how soon or in which country’s courts they will contest the issue.

The airport was taken over from GMR by MACL on 7thDecember following cancellation of the agreement. The Maldives government said that the agreement was void ab initio.