Bombay HC rules in favour of GMR; asks MIHAN to execute agreement for Nagpur airport

GMR said, in a regulatory filing on Friday, that the Bombay High Court has asked the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) to execute the agreement signed with the infrastructure company for the Nagpur airport. The High Court bench quashed the letter issued by MIHAN annulling the bidding process for the airport.

“The Hon'ble Nagpur Bench of the Bombay High Court yesterday (judgement copy available late evening) had quashed and set aside the Letter dated March 19, 2020 issued by MIHAN India Limited annulling the bidding process for the Nagpur Airport and further directed MIHAN India Limited to take all steps in terms of the RFP conditions, including signing of a Concession Agreement for the Nagpur Airport, within 6 weeks,” said the filing.

GMR had emerged as the highest bidder in the tender process conducted by MIHAN for the Nagpur airport in 2019. The authority also issued a Letter of Award (LOA) to GMR in March 2019. However, in March 2020, the Maharashtra government decided to cancel the tender process and issued a letter annulling the bid process.

The infrastructure company then challenged MIHAN at the Nagpur Bench of the Bombay High Court.

The bench heard the petition and quashed the annulment letter issued by MIHAN and directed it to execute the Concession Agreement for the project.

GMR is the largest private airport operator in Asia and fourth largest globally. It operates the Indira Gandhi International Airport in Delhi. It also runs the greenfield Hyderabad Airport, and the Mactan Cebu International Airport in Cebu, Philippines.

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