♤ In 2012 relations between India and Maldives came under a strain after Male had terminated the agreement it entered into with GMR in 2010 for the modernisation of the

Ibrahim Nasir International Airport. The airport was taken over by the Maldives Airports Company Limited after legal tussle in which GMR challenged the government’s deceision. Maldives government maintains the reason for cancellation of the project was because "the contract was illegally awarded" by the then President Nasheed.

♤ The country's anti-graft watchdog has ruled out any corruption in the leasing of the international airport to GMR. The airport expansion project was subsequently given to the Chinese company, which will plough in US $ 800 million.

♤ GMR, meanwhile, won arbitration against the Maldives at Singapore based International Arbitration Tribunal which awarded $270 million as compensation to the company.

♤ India is uneasy with Maldives's relationship with China. It is also believed that the new law passed by Maldives, allowing absolute foreign ownership of land on the conditions that interested parties would make a minimum investment of one billion dollar and reclaim 70 per cent land from the sea, will greatly benefit China in expanding its foothold in the Indian Ocean.