Maavelaavaru Island Leasehold Rights Listed for USD 111.6 Million Auction

State Bank of India has opened bidding for the leasehold rights and attached assets of Maavelaavaru Island in Noonu Atoll, setting a reserve price of USD 111.6 million as part of a court-authorised loan recovery process.

A sale notice issued by SBI said the Civil Court granted its Malé branch permission to sell the mortgaged property following a judgement delivered on 21 June 2026 in an enforcement case involving Athama Investments Private Limited and other parties.

advertisement

The notice identifies Athama Investments as the borrower and states that the island property was mortgaged to the bank against loans provided to the company.

The sale covers the island’s leasehold rights, buildings, structures, machinery, equipment, furniture, fittings, stocks and other assets usable in or attached to the island.

The bidding period runs from 23 July to 9 August, with sealed proposals to be submitted at SBI’s office in Malé. Each bidder must provide an earnest money deposit of USD 500,000. Deposits from unsuccessful bidders will be refunded, while the successful bidder’s deposit will be applied towards the purchase price.

The reserve price will serve as the starting bid, with the property awarded to the highest qualifying bidder. If multiple bidders submit the same highest offer, immediate spot bidding will be held in increments of USD 50,000.

The successful bidder must pay USD 10 million within 15 calendar days of the award and settle the remaining balance within 60 calendar days. Failure to meet the payment terms could result in USD 2 million being forfeited and the property being offered to the next highest bidder.

SBI said the auction will be conducted on an “as is where is” basis. Proceeds will be used to settle the loan account and applicable bank dues, legal expenses, property taxes and other costs, with any remaining amount returned to the borrowers or guarantors.