GMR share price drop following Civil Court Order

Share price of GMR, the Indian operator of Ibrahim Nasir International Airport in Malé, has dropped in the Indian National Stock Exchange, following a court order against the company in the Maldives.

The Civil Court of the Maldives issued a court order last Thursday, stating that the Company’s decision to charge 25 US Dollars from every passenger using the Airport as Airport Development Charge was not legal.

The Economic Times of India reported that GMR Share price dropped down to Rs. 18.60. This was the price of a GMR share 52 weeks ago.

Economic Times of India report also said that GMR would have to incur a loss amounting to 25 million US Dollars due to the claim against the company filed at the Maldives Civil Court by the Qawmee Party, an opposition political party in the Maldives.

GMR said yesterday that the Company had not yet received a copy of the judgment of the Civil Court. CEO Sidharth Kapoor told the Economic Times yesterday that despite the judgment of the Civil Court, he was certain that the Maldivian government would respect its agreement with the Company.

Meanwhile, the Maldivian Government has said that it would appeal the decision of the Civil Court.