Civil Court Issues Interim Stay on Termination of Hulhumalé Commercial Development Project

The Civil Court has issued an interim order halting the takeover of a land plot leased by the Housing Development Corporation (HDC) to GPL Holdings for the Southwest Marina Project, which includes the development of a parking and commercial building in Hulhumalé.

The order was granted following a petition filed by GPL after HDC cancelled two agreements related to the project and instructed the company to vacate the land within 30 days. HDC had issued two termination notices to GPL concerning the development.

HDC and GPL entered into two agreements in September 2023 for the development of the Southwest Harbour in Hulhumalé and the construction of a parking and commercial building. The wider project includes the development of a dinghy harbour, installation of a floating deck, and the provision of electricity and water supply services for vessels. In addition to docking facilities, a dedicated commercial building for business operations was planned as part of the development.

According to the project plan, the Southwest Harbour development was also intended to address parking constraints in the Greater Malé Region. The design includes designated parking areas for cars, motorcycles and persons with disabilities, alongside spaces earmarked for commercial use.

In its order, the Civil Court noted that GPL had paid an acquisition fee of MVR 1.1 million and a lease deposit exceeding MVR 715,000 for the Southwest Marina Project. The court further stated that GPL had paid HDC MVR 6.3 million as an acquisition fee and MVR 3.3 million as a deposit for the parking and commercial building project.

An affidavit submitted to the court indicated that GPL intends to file a substantive case against HDC in relation to the agreements. The court has ordered the petitioner to file the case within 14 days and, in the meantime, has stayed the enforcement of HDC’s termination notices.

The court said that expropriating the premises without first determining the original title could result in irreparable damage, warranting the interim relief.