Winning the privatization case, the GMR group will be able to operate Nagpur Airport
The GMR group will be able to operate Nagpur airport after the Bombay High Court ruled in its favor in a legal wrangle with Mihan India Ltd.
The Bombay High Court’s Nagpur Bench today set aside Mihan’s March 2020 order to cancel the award letter issued to GMR Group.
In addition, the court has directed it to execute a concession agreement with the GMR group within six weeks. The group intends to invest more than Rs 1200 crores in building a new integrated terminal, states sources.
The GMR group serves airports in Delhi and Hyderabad and is also building greenfield airports in Goa and Bhogapuram, Andhra Pradesh. In October 2018, the group was the greatest bidder for the operation and management of Nagpur Airport for a thirty-year period, advancing 5.7 percent of its gross revenue to Mihan, a joint venture of Maharashtra Airport Development Co. and Airport Authority of India.
Following that, it agreed to share more than 14% of gross revenue in post-bid negotiations and will own 74% of the project.
After Mihan canceled the award, the GMR group relocated the Bombay HC last year. Mihan acknowledged the petition by claiming that it never issued an award letter and that the March 2020 order was only attributed to bid acceptance. Furthermore, it stated that the issue of the award would be subjected to central government consent, which was pending.
Senior counsel Abhishek Manu Singhvi and briefed advocate Milanka Chaudhary served the GMR group.
