Recently, the International Dispute Resolution Centre for Arbitration and Mediation (IDRC), London dismissed a claim filed by Ras Al-Khaimah Investment Authority (RAKIA) against the Indian Government for damages amounting to $273 million payable by the Government of Andhra Pradesh (GoAP).
What was the case?
- The Government of Andhra Pradesh had to supply bauxite from Jerrela deposits located in the Eastern Ghats in Visakhapatnam district as per the Bauxite Supply Agreement (BSA) of October 2008.
- A. P. Mineral Development Corporation (APMDC) had served a notice in November 2016 for cancellation of the BSA allegedly for breaches on the part of ANRAK.
- RAKIA alleged that non-supply of bauxite from Visakhapatnam was in breach of the Bilateral Investment Treaty between India and the UAE.
- The Government of India argued that the IDRC’s arbitral tribunal lacked jurisdiction because the provisions of the Bilateral Investment Treaty (BIT) for arbitration at the instance of the investor (RAKIA) do not apply to this case.
- It was a major victory for the Andhra Pradesh Government as it would have otherwise had to pay the amount to the Government of India (GoI).
- India is a party to the dispute by virtue of signing a Bilateral Investment Treaty (BIT) with the United Arab Emirates (UAE) for the construction of an alumina refinery by Anrak Aluminium Limited (ANRAK) incorporated by RAKIA.
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