The Straits Times
www.straitstimes.com
Published on Dec 13, 2012
 

Maldives to face $977m claim in GMR airport row: Report

 
 

NEW DELHI (AFP) - An Indian-Malaysian consortium kicked out of the Maldives two years after winning a contract to run the island nation's main airport is to seek US$800 million (S$977 million) in compensation, a report said on Thursday.

The consortium, led by GMR Infrastructure, saw its contract revoked by the government last weekend in a politically motivated case that has soured relations between New Delhi and its south-western neighbour.

Mr Sidhartha Kapur, the chief financial officer of GMR Infrastructure's airports division, told The Wall Street Journal the firm had lodged a "rough estimate" for compensation with the Maldives of about US$800 million.

"We are working out the legal strategy," Mr Kapur was quoted as saying, adding that the claim would be finalised in the next six to 12 months.