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GMR case: Singapore court rules in favour of Maldives

Ruling means Maldives govt can go ahead and cancel the contract, effectively taking control from GMR

Reuters  |  Singapore 

A Singapore court ruled in Maldives' favour on Thursday, overturning an earlier order won by Infrastructure that had suspended the South Asian state government's decision to cancel its $511 million airport development contract with the company.

A judge at the Singapore Supreme Court ruled in the favour of Maldives, meaning it can go ahead and cancel the contract, effectively taking control from

The ruling comes after an order won on Monday by that had suspended the government's decision to cancel the contract, although the had still been pressing ahead with plans to take over the airport.

"The government has the power to do what it wants, including expropriating the airport," Sundaresh Menon, the Chief Justice of Singapore, said in court.



Shares in were down about 3.5% following the ruling after earlier being in positive territory on the day.

A spokesman declined immediate comment.

"We don't see any hiccups now. There won't be any problem. They will hand over the airport to us by December 7. All senior managers and consultants are working on that now," a government official told Reuters, declining to be named.

The standoff over the project threatens to cloud foreign investor sentiment towards Maldives, which is seeking overseas cash for many of its tourism projects.

The country terminated an agreement with last week, rattling its relations with India.

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GMR case: Singapore court rules in favour of Maldives

Ruling means Maldives govt can go ahead and cancel the contract, effectively taking control from GMR

A Singapore court ruled in Maldives' favour on Thursday, overturning an earlier order won by GMR Infrastructure that had suspended the South Asian state government's decision to cancel its $511 million airport development contract with the company.

A Singapore court ruled in Maldives' favour on Thursday, overturning an earlier order won by Infrastructure that had suspended the South Asian state government's decision to cancel its $511 million airport development contract with the company.

A judge at the Singapore Supreme Court ruled in the favour of Maldives, meaning it can go ahead and cancel the contract, effectively taking control from

The ruling comes after an order won on Monday by that had suspended the government's decision to cancel the contract, although the had still been pressing ahead with plans to take over the airport.

"The government has the power to do what it wants, including expropriating the airport," Sundaresh Menon, the Chief Justice of Singapore, said in court.

Shares in were down about 3.5% following the ruling after earlier being in positive territory on the day.

A spokesman declined immediate comment.

"We don't see any hiccups now. There won't be any problem. They will hand over the airport to us by December 7. All senior managers and consultants are working on that now," a government official told Reuters, declining to be named.

The standoff over the project threatens to cloud foreign investor sentiment towards Maldives, which is seeking overseas cash for many of its tourism projects.

The country terminated an agreement with last week, rattling its relations with India.

image
Business Standard
177 22

GMR case: Singapore court rules in favour of Maldives

Ruling means Maldives govt can go ahead and cancel the contract, effectively taking control from GMR

A Singapore court ruled in Maldives' favour on Thursday, overturning an earlier order won by Infrastructure that had suspended the South Asian state government's decision to cancel its $511 million airport development contract with the company.

A judge at the Singapore Supreme Court ruled in the favour of Maldives, meaning it can go ahead and cancel the contract, effectively taking control from

The ruling comes after an order won on Monday by that had suspended the government's decision to cancel the contract, although the had still been pressing ahead with plans to take over the airport.

"The government has the power to do what it wants, including expropriating the airport," Sundaresh Menon, the Chief Justice of Singapore, said in court.

Shares in were down about 3.5% following the ruling after earlier being in positive territory on the day.

A spokesman declined immediate comment.

"We don't see any hiccups now. There won't be any problem. They will hand over the airport to us by December 7. All senior managers and consultants are working on that now," a government official told Reuters, declining to be named.

The standoff over the project threatens to cloud foreign investor sentiment towards Maldives, which is seeking overseas cash for many of its tourism projects.

The country terminated an agreement with last week, rattling its relations with India.

image
Business Standard
177 22