Unreasonable, Unjustifiable and unlawful dealings in progress!
There is no valid reason for the govt to ‘compensate’ Villa Air (VA) over Kadeddhoo Airport (KDM).
No significant investments made by VA.
They have failed to fulfill their obligations under the agreement.
At this moment, govt should have terminated the agreement.
Let me explain why;
2013 – Agreement to develop/operate KDM signed.
2017 – Agreement terminated by govt.
2018 – Civil Court ruled termination unlawful.
2019 – High Court upheld the ruling.
2021– Supreme Court reaffirmed it.
2022 – Agreement reinstated by govt.
The reinstated 50-year lease agreement signed on March 1, 2022 requires VA to develop KDM within 7 years:
Year 1 – Domestic facilities and operations must be upgraded to meet CAA certified standards.
By the Year 7 – A full-fledged international airport must be developed, meeting CAA certified standards for international operations.
VA failed to meet its Year 1 obligations, and now, in the 4th year, there has been no progress in the development works.
Therefore, the govt is in a strong position to unilaterally terminate the agreement without legal consequences. Should not even ask whether VA agree or not.
And hence there is no reasonable, justifiable and lawful situation to make a compensation as such.
If govt wants the airport, just terminate the agreement.