Nagpur: GMR group will be able to operate the Nagpur airport with the Bombay High Court ruling in its favour in a legal dispute against Mihan India Limited.
The Nagpur bench of Bombay High Court today set aside Mihan’s March 2020 order to cancel the award letter issued to GMR group. The court has also ordered it to execute a concession agreement with the GMR group in six weeks. The group plans to invest over Rs 1,200 crore to build a new integrated terminal, sources said.
The GMR group operates Delhi and Hyderabad airports and is also constructing greenfield airpots in Goa and Bhogapuram in Andhra Pradesh. In October 2018 the group emerged as the highest bidder for operation and management of Nagpur airport for period of thirty years offering 5.7 per cent of its gross revenue to Mihan, a joint venture of Maharashtra Airport Development Company and Airport Authority of India. Subsequently, it agreed to share over 14 per cent of gross revenue in post bid negotiations and will hold 74 per cent stake in the project.
The GMR group moved the Bombay High Court last year after Mihan cancelled the award. In response to the petition, Mihan argued that it never issued an award letter and March 2020 order only referred to acceptance of bids. Further it said that issue of award would be subject to central government approval which was pending.
GMR group was represented by senior counsel Abhishek Manu Singhvi, briefed advocate Milanka Chaudhury.