GMR defends Manila airport contract

GMR Infrastructure Ltd today submitted before the Delhi High Court that it had made full disclosure about the annulment of the Manila airport contract at the time of bidding.

Reliance Airport Developers Ltd had charged GMR of concealing facts and had accused its consortium partner Fraport of having a tainted international track record. It said the German police was also allegedly investigating the corruption charges against the Fraport chief executive.

However, GMR today said that it had acted in a transparent manner in making all the disclosures and no such investigations were ordered against the CFO of Fraport, as alleged.

Reliance had alleged that the GMR-Fraport consortium, which was awarded the contract for modernisation of the Delhi airport, had committed "fraud" as it had not disclosed the annulment of its contract for the Manila Airport by the Philippines government in May 2003 .

According to GMR counsel PP Venugopal, the public prosecutor of Frankfurt had initiated a preliminary investigation against the former CFO of Fraport. "The disclosure of the pending investigation was made at the stage of the EOI itself, although, it could have been avoided as these proceedings were not against any of its employees at the time of submission of bid documents."

On the contrary, GMR alleged that Reliance had made serious misrepresentations about the experience and capabilities of its partner Mexico ASA.

Regarding last minute changes in the selection process, GMR counsel Abhishek Manu Singhvi said Reliance was fully aware of the changes in procedure before the actual change happened and should be stopped from challenging the modifications of the RFP after having taken an advantage of its amendment and not objecting to its opening of the financial bid.

Reliance, which had accepted the constitution of GETE under the chairmanship of Delhi Metro Rail Corporation Managing Director E Sreedharan, cannot now challenge its jurisdiction as it was aware of more information than in the public domain, the counsel said, adding it was also aware of the contents of the GETE report

According to GMR GETE had corrected certain apparent errors and ensured that the government's policy regarding airports privatisation, as reflected in the RFP, was not distorted. It had also removed the unequal weightages assigned by the evaluation committee thus ensuring uniformity in the entire process, Singvi said.

While claiming that the decision of the GoI/EGom was not liable to review unless it was shown to be 'malafidely perverse,' GMR said that 'the ultimate approval, application of mind and responsibility for the decision vests and can only vest with the GoI and therefore, there is no question of any illegal delegation of power by the EGoM/GoI.'

The comprehensive and visionary IDP, which is based on a modular expansion, was planned by world class air plan consultants - UK-based Motts McDonald and HOK, Singvi informed the court.