GMR explores legal options against Maldives govt

It had also asked GMR to vacate and remove all property from the airport within 30 days. Reuters

Meanwhile, Maldives has denied a report by local Sun Online that work permits and visas of GMR officials in the Maldives be canceled within seven days.

Maldives President's Press Secretary said that GMR has gotten more time Masood Imad than what is laid down in the contract. Visas to GMR officials will continue according to the normal procedures, he added.

"According to the contract, either party may terminate the contract notice 5 days but we have 7 days to deliver it to them the project. They have more time to get their equipment after handing over the airport to MACL. The visa will continue to stand according to the normal procedures, "he said.

The Maldivian Cabinet on Tuesday decided to terminate the contract for the development of Male GMR Airport and issued a notice to handing the airport within 7 days to state company Maldives airports Company Ltd.

It had also asked GMR to vacate and remove all property from the airport within 30 days. GMR group, via a consortium with Malaysia airports Holdings Berhad (BE CENTRED ROUND), had the 500 million dollar contract on June 24, 2010 won by a global competitive bidding process of upgrading and managing the male airport for 25 years.

The contract, named as some of the biggest foreign direct investment in the Maldives, then got from the Maldivian Government headed by Mohamed Nasheed. However the project was hanging in balance since the regime change in the Maldives, as some local political parties earlier this year, which is now in power, were opposed to levy a $ 25 per passenger cargo GMR airport for application development (ADC).

The issue of charging the ADC is currently pending in a Court of arbitration in Singapore. Termination of the GMR contract also had sharp responses from the Government of India called, which said Tuesday that it is a "very negative signal" to foreign investors.

"The decision to terminate the contract with GMR without consultation with the company or the efforts to arbitration in accordance with the agreement a very negative signal for foreign investors and the international community", a spokesman of the Ministry of Foreign Affairs had said.

PTI

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