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Singapore ruling on GMR has not sorted out all issues: India

Posted on Dec 06, 09:06PM | UNI

India today said a Singapore Court ruling of today upholding the Maldives Government's order cancelling a 511 million dollar airport development contract with Bangalore based with GMR Infrastructure, had not sorted out the whole issue and expressed the hope that the remaining issues too would be sorted out through a legal process.

The move by President Waheed's Government had envoked strong reaction by New Delhi, as it was the country's largest FDI in Maldives.

Responding to a question on the Singapore court ruling, Ministry of External Affairs Spokesperson Syed Akbaruddin said, "We have seen the reports, and we are studying the judgement." He said his initial understanding was that there were three issues for legal consideration- the right of the state to take over the airport and the issues of the legality of the agreement and compensation to parties.

The issues were not affected by today's judgement and were not responded to by the Court, said the Spokesperson and expressed the hope that the Maldives Government would adhere to legal process on these two issues too.

Earlier, on Monday, the court had suspended the Waheed Government's decision to cancel the contract, after GMR took the case to it.

According to media reports from Singapore, in today's judgement, the Chief Justice of Singapore Sundaresh Menon said, "the Maldives government has the power to do what it wants, including expropriating the airport." The GMR deal had been signed during former President Mohammad Nasheed's rule. He was forced out of power early this year.

Mr Nasheed's successor filed legal suit saying the contract was invalid as it contained a 25 dollar airport development charge per outgoing passenger which was not authorised by parliament.

Mr Akbaruddin also denied reports that an envoy of President Waheed who had sent a communication to Prime Minister Manmohan Singh explaining the circumstances under which he wanted to cancell the deal was made to wait for 45 days.

"Yes we did receive this request. We responded saying we will receive him at an appropriate level, but the report that the envoy waited for 45 days is a figment of imagination," Mr Akbaruddin said.