GMR suffers setback in Maldives airport dispute

Male airport GMR has previously said the decision to cancel the contract was irrational and unlawful

Related Stories

Singapore's Supreme Court has ruled in favour of the Maldives government's move to cancel the contract of India's GMR to manage Male airport.

The ruling overturns an earlier order by a Singapore court that suspended the move, and clears the way for Maldives government to take over the airport.

GMR and Malaysia Airports Holdings Berhad won a joint contract in 2010 to operate the airport for 25 years.

Maldives had said the deal faced "legal, technical and economic issues".

"The Maldives government has the power to do what it wants, including expropriating the airport," Sundaresh Menon, the chief justice of Singapore, was quoted as saying by the Reuters news agency.

When contacted by the BBC, a GMR spokesman said: "We have no comments on the order at this moment, as we are in process of evaluating the same".

It had previously said that the decision to cancel the $500m (£312m) contract was "irrational" and "unlawful".

Meanwhile, India has also voiced its concerns, saying the move would send a "very negative signal" to foreign investors.

GMR has a 77% stake in the operation while the Malaysia Airports Holdings Berhad owns the remaining 23%.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.