India has reiterated that cancellation of GMR contract by Maldives will have implications on the bilateral relations. External Affairs Minister, Salman Khurshid told this to Maldivian Foreign Minister Abdul Samad Abdullah in a telephonic conversation this morning. Mr. Abdullah had called Mr. Khurshid to explain their stand on the issue. Giving details of the meeting the External Affairs Ministry official told AIR that according to Mr. Abdullah, Maldivian President Mohamad Wahid will send a detailed communication explaining their stand on the issue to Prime Minister, Dr. Manmohan Singh.
Meanwhile, GMR Infrastructure said that it will take all legal remedies to protect its 511 million US Dollar airport contract in the island nation. CEO of GMR Male International Airport Andrew Harrison told PTI from Male on phone that the Maldives government, which had given a sovereign guarantee, did not follow the terms of the agreement, which has laid down a proper procedure to be followed even in the case of terminating the contract.
When asked whether GMR would move to the International Court of Justice in case of a forceful take over of the Male airport by the Maldivian government, he said,every single legal remedy will be followed.
Yesterday, GMR had secured a stay from the Singapore HighCourt against the Maldives government notice of November 27th,through which its contract was terminated and the company was asked to handover the airport within seven days.
Immediately after the Singapore High Court verdict,Maldives made it clear that its termination decision was non
-reversible and non-negotiable and said no such injunction can be issued against a sovereign state. Maldives President Mohamed Waheed's press secretary Masood Imad told PTI in Male that decision was based on legal advice from lawyers in the UK and Singapore.
However, the GMR CEO said that terms of termination, that is part of the 25-year concession agreement signed by a
GMR-led consortium, Maldives Airports Company Ltd (MACL) and government of Maldives for running the Male airport, have not been followed by the local government.
According to him, in case of termination or contract getting void, the Maldives government will ensure that investment of Axis Bank,the lenders of GMR for the project,
would be protected and a notice of 60 days will be given.
Besides, the compensation will be paid within 60 days and before the control of the airport is given to any one else, he said while elaborating the termination clauses of the agreement.