Singapore arbitrations have announced that the Government was not liable to pay the loan guarantee given by Government to GMR Group to develop Ibrahim Nasir International Airport.
Axis bank had loaned US$ 160 million to GMR. When the agreement between the Government and GMR was annulled in 2012, Axis bank had ordered the Government to pay back the loan. However, the Government had refused to pay the said amount. The case was submitted for arbitration by the bank in April 2013.
The hearings of the case had been held from the ninth of March to the 15th of March.
Attorney General’s Office also reported that the arbitration court had ordered the bank to pay the legal costs borne by the Government in this period.
Govt. does not have to pay airport development loan: arbitration
