Singapore court order clears the way for Male to throw out GMR
In a serious setback to Indian strategic interests in Maldives, and to India’s image in the region, the Indian multinational company, GMR, which is operating the Ibrahim Nasir International Airport here for over two years, will exit Maldives on Friday.
On Thursday, the Singapore Court of Appeal held that Maldives had the right to annul a contract it had signed with GMR, barely a day before the government-set deadline to throw out the airport operator expired. “The Maldives government has the power to do what it wants, including expropriating the airport,” Sundaresh Menon, the Chief Justice of Singapore, said in court, according to Reuters.
The Defence Minister, Mohamed Nazim, who is also the acting Transport Minister, met GMR representatives soon after the Court decision to work out modalities for the transfer of the airport to the Maldives Airport Company Limited [MACL]. “An overseeing committee has been constituted. This will meet at 10 am on Friday to discuss all outstanding issues,” said Masood Imad, Media Secretary to President Mohamed Waheed.
The Maldivian Government representatives who spoke to The Hindu insisted that the whole issue was a “company-to-company” affair [GMR and MACL] and had nothing to do with governments of both countries. “The cost of the India – Maldives relationship is not $ 600 million or whatever this project costs,” Mr. Imad said.
Former President Mohamed Nasheed urged the government to re-think the move. “The government must pull back from the brink and cease its counter-productive behaviour, which is damaging the nation’s economy and bilateral relations,” Mr. Nasheed warned.
The Indian govt is seen as encouraging crony capitalism in other countries.
Crony capitalism has made India worse, thankfully other nations are not as gullible as India.
India should scrap the Delhi airport project also.
The idea of making a business model out of operating another country's airport seems poor. The terms of the business model needs to be equitable. The fact that a little known entity "GMR" entered in a huge infrastructure project makes one feel that there was some unethical practice underlying the deal.
Indian foreign ministry was hasty in warning Male govt, in support of the GMR, without anticipating the court's flipflop in the matter. Foreign ministry could have shown some wisdom.
Good decision from the Court, and good for Male. National interests come
above Profit Motives.
The ship will not sink at any cost. It will be as per my perception.
Despite all bickering, the whole episode needs a case study regarding corporate ethics, standards, political involvement, profitability and international law.
Now i do believe india has no control on indian ocean. China is more active than india on this region, this will be big mistake by indian goverment. The goverment of india should not allow Maldives to cancel GMR agreement. Wake up India!!
It is a bit confusing, was this a new judgement? Looks logical as
the "Country" should prevail.
It will be good to cover the dubious terms of the contract than build the China angle on these stories. I have experienced first hand the arbitrary airport charges imposed on a common consumer at the IGI airport, which is going to carry on for the next 20-30 years to fleece the airline passenger, all with Government participation. The airport is world class but the charges arbitrary.
Similar to what is happening on so many toll highways, where build, operate and transfer is the norm. The transfer never takes place inside 20 years and there is no regulation on operation. Why not cover these stories.
There is also a direct correlation between the assumption of External affairs charge by Mr Khurshid and the number of such stories in the media (India upset with Maldives, India taking up the case of Norway couple etc. to name a few). He may be a more media savvy minister but it does not take away from the stories that are out there.
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