Singapore International Arbitration Centre has ruled against India’s GMR Group over the claim filed for an additional USD15 million as compensation owed by the Maldives government for breaking off the contract awarding development of the Maldives’ main airport to the Indian firm.
GMR had earlier filed the case at Singapore’s Arbitration Centre tribunal seeking compensation for breaking off the contract, and the case had stretched for four years until a settlement was reached on October 25 2016. GMR’s original demand was USD 1.4 billion as compensation. However, Singapore’s Arbitration Centre had deemed the amount too high and finally settled on USD 208 million with four years’ of 17 percent interest and operational costs. The Maldives government had initially said this amount would total MVR 250 million.
Mihaaru understands that Singapore International Arbitration Centre made the ruling against GMR last Friday.
The previous government of Maldivian Democratic Party (MDP) under former president Mohamed Nasheed’s reign had handed over the airport's operations to GMR Group for 25 years. Two years later, the government of former president Mohamed Waheed, who rose to office following Nasheed’s fall from power, had taken back the airport from GMR as the agreement was debilitating to both Maldives Airports Company Ltd (MACL) and Maldivian citizens.