DP World is reportedly sticking to plans to invest US$500 million more into Indian seaports despite reverses in the Indian high courts, reports The Hindu newspaper.
This despite the fact that the Gujarat High Court has upheld an earlier judgment from the Gujarat Maritime Board (GMB) to terminate DP World's agreement to run a new facility at the Mundra International Container Terminal (MICT).
The Hindu reported DP World plans to make its case for operating the second terminal within the privately developed and operated MICT complex, given that the company had "sought an injunction on it against the Adani Group."
Since last year, DPW has also been engaged in a legal battle with the Adani over the transfer of "ownership" of the second container terminal at Mundra from P&O Ports to MICT.
Kevin D'Souza, director (Commercial), MICT, told The Hindu that the second terminal was "actually the second phase of our existing project and we will continue to pursue it as per the provisions of the sub-concession agreement".
The legal dispute over which party has the right to operate MICT stems back to the 2005 acquisition of P&O by DP World. The first container terminal at the port of Mundra had originally been developed by the Adani Group and operated by P&O Ports.
UK-based P&O Ports bought the Adani Group's entire stake in the first terminal at MICT before P&O had been acquired by DP World. According to sources, the agreement was for the Adani to hand over control of the second terminal as well to P&O ports once the latter achieved a set annual throughput. But MICT fell short of the targeted throughput mark in 2006-07, the report said.
Following the acquisition of P&O, DP World began running MICT, however, the Gujarat Maritime Board (GMB) objected to this arrangement and terminated DP World's agreement. The Hindu said the GMB had initially disqualified DPW to operate MICT on the grounds that it took hold of the container facility without seeking prior approval from the GMB, and that P&O could not transfer assets and property to DP World without regulatory consent.
To thwart termination, DP World took the case to court, but both the Ahmedabad court and then the High Court ruled against DP World.
The High Court said in a ruling earlier this month that "no change of control of MICT was permissible", the report claimed.
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