Lucky Exports India Private Limited has sought arbitration with the government of the Maldives over the termination of the contract awarded to the company to install sewerage networks in two islands.
Lucky Exports was awarded the contract to install sewerage networks in Naifaru, Lhaviyani Atoll and Veymandoo, Thaa Atoll on June 18, 2017, by the previous administration. The Indian company was contracted to complete the projects within 18 months, at a price of USD 9.7 million. However, the contract was terminated by the current administration in February 2020, citing failure to carry out the projects as stipulated in the contract.
Attorney General’s Office (AGO) revealed Lucky Exports had submitted an arbitration case against the government in March, seeking compensation for damages. AGO also revealed the High Court of New Delhi has issued an order to stop the release of the USD 483,451 kept at the Syndicate Bank of India as a performance guarantee of the company. The AGO stated the government has issued a response to the order by the New Delhi court on August 14.
The AGO further stated the government is required to maintain sensitive information regarding the arbitration case in confidence, noting the release of further information can warrant action by the Arbitration Tribunal.